Repurchase Agreement Multiple Choice Questions with Answers – PDF Download

MCQ 1: The agreement which incurs the transaction between two parties and promise held that second party will sell security at specific maturity is classified as:

1. repurchasing commercial notes
2. repurchase bills
3. purchase agreement
4. reverse repurchase agreement

MCQ 2: The repurchase agreements having maturity of one week or lesser have denominations of:

1. $10 million or more
2. $20 million or more
3. $25 million or more
4. $15 million or more

MCQ 3: For a particular security transaction, the agreement is 'repo' with the point of view of:

1. security seller
2. security buyer
3. security function
4. security function

MCQ 4: For a particular security transaction, the agreement is classified as 'reverse repo' with the point of view of:

1. security liability
2. security buyer
3. security seller
4. security function

MCQ 5: The government regulates financial markets for two reasons which are:

1. increase information available to investor
2. ensure the soundness of financial system
3. create a sound atmosphere
4. Both A and B