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    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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