Which of the Following Statements Is True Regarding Repurchase Agreements

question 15

Multiple Choice

Which of the following statements is true regarding repurchase agreements?

• A) Their maturity is greater than 1 year.
• B) They are an unsecured form of borrowing.
• C) U.S. Treasury securities serve as their collateral.
• D) They make explicit, rather than implicit, interest payments.

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