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Which of the Following Is an Overnight Collateralized Loan Facility

question 56

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Which of the following is an overnight collateralized loan facility that provides loans for up to 120 days to primary dealers in exchange for a broad range of collateral?


Definitions:

Floating-Rate Bond

A type of bond with a variable interest rate that adjusts periodically according to a specified benchmark rate.

Junk Bond

A high-risk, high-yield bond rated below investment grade, offering potential for high returns and high risk of default.

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