Question

In a repurchase agreement, the percentage difference between the repurchase price and amount borrowed is equal to:

A Repo margin Correct Answer Incorrect Answer
B Repo rate Correct Answer Incorrect Answer
C Haircut Correct Answer Incorrect Answer
D Bank rate Correct Answer Incorrect Answer
E None of the above Correct Answer Incorrect Answer

Solution

          In a repurchase agreement, the percentage difference between the repurchase price and the amount borrowed is equal to the repo rate

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