Which of the Following Is an Advantage of a General

question 29

Multiple Choice

Which of the following is an advantage of a General Collateral Finance RP?

• A)The securities pledged in the first leg need not necessarily be the same to be returned.
• B)It can be settled on the books of the FICC which allows for netting of transactions.
• C)It entails lower transaction costs.
• D)It helps make RP market more liquid.
• E)All of the options are correct.

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Definitions:

Market Economy

An economic system in which the prices of goods and services are determined in a free price system, largely governed by the forces of supply and demand.

American System

The American System was an economic plan that played a significant role in American policy during the first half of the 19th century. It advocated for a strong federal government to create a protective tariff, a national bank, and infrastructure improvements.

Northeast

A region in the United States known for its historical significance, economic output, and dense population, typically including states in the upper Northeastern part of the country.

Slavery

A system in which people are legally owned by others as property and are forced to work without freedom or the right to compensation.