Question: 19. Recently, the regular collateralized debt obligations (CDO) market has been surpassed by: A. credit swaps. B. credit options. C. credit-default swaps. D. total-return swaps.

19. Recently, the regular collateralized debt obligations (CDO) market has been surpassed by:

A. credit swaps.

B. credit options.

C. credit-default swaps.

D. total-return swaps.

E. synthetic collateralized debt obligations.

20. According to research, off-balance-sheet standby credit letters reduce risk by:

A. increasing the diversification of assets.

B. reducing the need for documentation.

C. reducing probability of losses.

D. avoiding capital requirements.

E. increasing concentration of risk exposure

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