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All main topics / Finance & Investment / Derivatives / Derivatives
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
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.
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Flashcard info:
Author: CoboCards-User
Main topic: Finance & Investment
Topic: Derivatives
Published: 27.10.2015




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