Repurchase Agreements (Repos)are Used Extensively to Finance Security Holdings

question 39

Multiple Choice

Repurchase agreements (repos) are used extensively to finance security holdings. In 2007,many investment banks and other financial institutions were unable to roll over their maturing repurchase agreements during the subprime mortgage crisis. This inability to get new repo financing is an example of

• A)credit risk.
• B)liquidity risk.
• C)sovereign risk.
• D)technological risk.
• E)operational risk.

---

Definitions:

Collaborative Goals

Objectives that are pursued together by two or more parties, with a focus on mutual benefit and shared success.

Behaviorally Specific

An approach that focuses on concrete, observable actions rather than on abstract traits or intentions.

Retrospective Goals

Objectives set after the fact, often used to make sense of past behaviors or outcomes in a new light.

Conflict Partners

Refers to the individuals or groups involved in a conflict, each with their own perspectives, goals, and strategies for addressing the disagreement.