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:

Reasonable Person

A hypothetical individual in the legal system who exercises average care, skill, and judgment in conduct and is used as a standard to assess behavior.

Duress By Physical Force

The use of physical force or threats to compel someone to act against their will or to consent to an agreement.

Duress By Improper Threat

A situation where an individual is forced or coerced into a contract or legal agreement under threats that are unlawful or unethical.

Void Contract

is an agreement without legal effect or binding force from its inception due to failure to meet essential legal requirements.