A Repo Rate Is

question 1

Multiple Choice

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

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Definitions:

Partially Performed

Refers to a contract or agreement that has been started but not completed, fulfilling some but not all obligations.

Adequacy of Consideration

A legal principle assessing whether the value exchanged in a contract is reasonable and fair to both parties.

Breach-of-Contract

An act of breaking the terms set out in a contract, which can lead to legal consequences and damages.

Preexisting Duty Rule

A legal principle stating that performing a duty that one is already legally obligated to do is not sufficient consideration for a new contract.