Question 7 The duration gap is one of the key reasons a bank swaps variable rate payments for fixed rate payments. O True O False D Question 8 In the derivatives markets, the instrument that works best when you want to hedge a risk for a short period is a swap. O False True D Question 9 Credit Default Swaps created much systemic damage during the financial crisis because the counterparty risk was underestimated and AIG could not deliver the protection it had sold. True False