Which One of the Following Statements Is True of Repurchase

question 42

Multiple Choice

Which one of the following statements is true of repurchase agreements?

• A) Their initial 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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Definitions:

Discarded

Thrown away or disposed of as no longer useful or required after consideration.

Abandoned Property

Property that has been discarded by the owner, who has no intention to retain title or possession.

Eminent Domain

The right of a government to expropriate private property for public use, with compensation.

Mislaid

Property that is intentionally set down by someone who then forgets to retrieve it.