Which of the Following Statements Is True Regarding Repurchase Agreements

question 87

Multiple Choice

Which of the following statements is true regarding repurchase agreements?

• A)Their maturity is greater than one year
• B)They are an unsecured form of borrowing
• C)Treasury bills serve as their collateral
• D)They make explicit, rather than implicit, interest payments

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Definitions:

Ex-dividend Date

The date on which the buyer of a stock is not entitled to the next dividend payment. After this date, the stock sells without its dividend rights.

Declaration Date

The specific date on which a company's board of directors announces its next dividend payment.

Record Date

The record date is a set date when a company determines its shareholders who are eligible to receive dividends or participate in corporate actions.

Payment Date

The date on which a dividend, bond interest, or other payment is actually disbursed to investors.