Teaching UGC NET Mock Test Series 2025 (Paper 1 & 2) Banking and Financial Awareness Financial Markets
Consider the following statements about Credit Default Swap (CDS):
1. CDS is a financial derivative instrument used to hedge risks in bond investments.
2. The seller of CDS compensates the buyer in case of a debt default.
3. CDS involves Government Securities only.
Which of the statements given above is/are correct?1
1 and 2 only
2
2 and 3 only
3
1 and 3 only
4
1, 2 and 3