Which Type of Repo Is the Most Risky for the Buyer

question 18

Multiple Choice

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

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

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Definitions:

Legal Obligations

Commitments or duties bound by law that require an individual or company to act or refrain from acting in a certain manner.

Other Comprehensive Income

Earnings derived from non-operational activities that are not included in net income, recorded in equity.

Revaluation

Revaluation is an adjustment to the carrying value of a currency, asset, or liability to reflect its current market value.

Revaluation

The process of adjusting the carrying value of an asset or liability to reflect its current market value.