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A repo rate is
A.An uncollateralized rate
B.A rate where the credit risk is relative high
C.The rate implicit in a transaction where securities are sold and bought back later at a higher price
D.None of the above
A.An uncollateralized rate
B.A rate where the credit risk is relative high
C.The rate implicit in a transaction where securities are sold and bought back later at a higher price
D.None of the above
Answer: C
A repo transaction is one where a company agrees to sell securities today and buy them back at a future time. It is a form of collateralized borrowing. The credit risk is very low.
A repo transaction is one where a company agrees to sell securities today and buy them back at a future time. It is a form of collateralized borrowing. The credit risk is very low.
Karteninfo:
Autor: CoboCards-User
Oberthema: Finance & Investment
Thema: Derivatives
Veröffentlicht: 27.10.2015