35. What is a collateralized debt obligation? Select one: a. a structured financial product where established SPV pools together cash flow-generating assets (usually mortgage) and repackages them into debt structure securities that can be sold to investors g O b. An agreement to exchange interest payments when one party defaults O c. A type of insurance against defaults d. A contract between credit rating agencies 33.(1) Collateralized Debt Obligation was invented in the 2000s before the "Great Recession", and quickly triggered the most impactful financial crisis ever. (II) CDO back up their cash flow with payment from mortgage borrowers. Once mortgage borrowers stop making their payment towards their mortgages, CDO default. ag Select one: a. (1) is true, (II) is false. O b. (1) is false, (II) is true. c. Both are true. d. Both are false. 32. When asset prices fall following a boom, Select one: a. financial institutions may see the assets on their balance sheets deteriorate, leading to deleveraging. b. financial institutions experiencing deterioration of balance sheets will reduce lending, eventually leading to credit freeze. c. both A and B are correct. O d. none of the above are correct. 31. CDS which is credit default swap, basically allow people to purchase insurance on other people's securities. Select one: a. True b. False 31. CDS which is credit default swap, basically allow people to purchase insurance on other people's securities. Select one: a. True b. False