Which Type of Repo Is the Least Risky for the Buyer

question 61

Multiple Choice

Which type of repo is the least risky for the buyer?

• A) Delivery repo
• B) HIC repo
• C) Tri-party repo
• D) There is no real difference

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Definitions:

Profitability

A financial metric used to assess the ability of a business to generate earnings compared to its expenses over a specific period.

Current Ratio

A financial metric that measures a company's ability to pay off its short-term liabilities with its short-term assets.

Liabilities

Financial obligations or debts that a company owes to others.

Debt

Money owed by one party to another under the condition of repayment, often including interest charges.