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Which of the following is true about credit default swaps? (Select all that apply.) a) They are insurance contracts b) They are used by speculators

Which of the following is true about credit default swaps? (Select all that apply.)

a) They are insurance contracts

b) They are used by speculators to make money on credit risk

c) They require a large initial margin requirement relative to the notional value of the contract

d) They are generally not used to reduce a bank's exposure to credit risk

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