Repos Are

question 21

Multiple Choice

Repos are

• A) usually low-risk loans.
• B) usually collateralized with Treasury securities.
• C) low interest rate loans.
• D) all of the above.
• E) only A and B of the above.

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Definitions:

Year

A period of time consisting of 365 days, or 366 in a leap year, used as a measure of time for calendars, age, and time intervals.

Sponsor

An entity or individual that supports an event, activity, person, or organization financially or through the provision of products or services.

Geometric Average Rate

The average compound return per period over a time span, useful for comparing different investments or portfolios.

Compounding

The process where the value of an investment increases because the earnings on an investment, both capital gains and interest, earn interest as time passes.