Use the Following Statements to Answer This Question

Multiple Choice

Use the following statements to answer this question:
I.Credit default swaps (CDS) are insurance on the default of issuers of the debt.
II.The CDS market is heavily regulated to limit excessive exposure to risk.

A) I is correct, II is incorrect
B) I and II are correct
C) I and II are incorrect
D) I is incorrect, and II is correct