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kupik [55]
3 years ago
10

A bank purchased a credit default swap from another financial institution to protect itself against the default of one of its bo

rrowers. In this example, the bank is:.
Business
1 answer:
Vedmedyk [2.9K]3 years ago
6 0

Answer: Hedging

Explanation: because the bank is hedging when it purchases a credit default swap that is offering protection against the default of one of its borrowers.

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