What Is the Repurchase Price of a Classic Repo

question 372

Multiple Choice

What is the Repurchase Price of a classic repo?

• A) The market value of bond collateral at the end of the repo at the clean price of the bond
• B) The market value of bond collateral at the end of the repo at the dirty price of the bond
• C) The amount of cash actually paid for collateral at the start of the repo
• D) The amount of cash actually paid for collateral at the start of the repo plus repo interest

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Definitions:

Shovel

A tool typically used for digging, lifting, and moving bulk materials, such as soil, coal, gravel, snow, sand, or ore.

Demand Curve

A graphical representation that shows the relationship between the quantity of a good that consumers are willing to purchase and its price.

Consumers

Individuals or groups who purchase goods and services for personal use and not for manufacturing or resale purposes.

Microeconomic Theory

The study of individual, household, and firm behaviors in decision making and allocation of resources.