Which Party Usually Takes an Initial Margin in a Classic

question 417

Multiple Choice

Which party usually takes an initial margin in a classic repo?

• A) The buyer
• B) The seller
• C) Neither
• D) Both

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Definitions:

Issued At

Refers to the price or condition under which securities, such as bonds or stocks, are made available for sale when they first come to market.

Journal Entry

The transaction (debits and credits) that is recorded into the journal once it is analyzed.

Accounts Payable

Liabilities representing amounts owed to creditors for goods and services received but not yet paid for.

Retired

In accounting and finance, this term often indicates that an asset has been taken out of service or that a debt instrument, like a bond, has been paid off and is no longer in circulation.