Repurchase Agreement MCQ (Multiple Choice Questions) PDF Download

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

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

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

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

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