QUESTION 1 15 points Save Answer You are a bank that just loaned $10 billion to Trump Inc. You are concerned about holding the credit risk and want to use a credit default swap to remove the credit risk from your loan to Trump Inc. Which one of the following is true? You are the seller of the CDS You ara tre seller of credit risk protection. You will receive no up front cash payment. You will pay an upfront cash payment. QUESTION 2 15 polnts Save Answer Of the loan made to Trump Inc, the party that takes the CDS as an investment is: none ol the other responses are true the seller of credit risk protection the issuer of the CDS the buyer of credit risk protection QUESTION 3 15 polnts Save Answer CDS are a special form of SPEs or SPVs (the last two tems are really the same thing.) One nice thing for the seller of a CDs it that: " is 'al balance) sheer. It shows up on the balance sheet of the lender it doesn't sh ow up on buyers linancial statements at all it requires filing with the Security and Exchange Commission so it can be sold in the secondary market. QUESTION 4 15 points Save Answer At one time, with respect to the U.S. CDS market, the total amount of CDS value excecded: 65 trillion S435 trillion $3 trillion but never more than $15 trillion The amounts involved in CDSare only notional and don't reflect any true cash flows. QUESTION 5 15 points Save Answer CDSs were invented during: early 2000s mid-1800s the 1990s the 1980s QUESTION 6 15 points Save Answer True or false It is possible that CDSs, set up before the lates tax law passed by the U.S. Congress, could require changes to those CDSs. True False QUESTION 7 10 points Save Answer Unlike insuranoe policies and most debt payments, there is no grace period for missing a payment due in a CDS. True False