Suppose securities dealer sells repo to an investor

Assignment Help Financial Management

Reference no: EM131981443

1. Which statement is false?

A. Both commercial paper and bankers' acceptances have short maturities.

B. Both commercial paper and bankers' acceptances are used for specific commercial transactions.

C. Bankers' acceptances are issued at a discount to face value.

D. Commercial paper is often rolled over by the issuing corporation.

2. Suppose a securities dealer sells a repo (repurchase agreement) to an investor. Which of the following is not true?

A. The investor could "flip" the repo by quicky selling it to another investor and then buying it back before it matures.

B. The repo is usually collateralized by government debt instruments.

C. The buyer (investor) might be purchasing the repo to reduce total portfolio risk.

D. The buyer (investor) and seller (securities dealer) cannot switch roles for a given repurchase agreement.

Reference no: EM131981443

Questions Cloud

When you inherit from another class : When you inherit from another class, how can you use your parent's members?

What is present value of growth opportunities : Even Better Products has come out with a new and improved product. What is the present value of growth opportunities?

Provide why you chose this option : Assuming you are the vice president of JetBlue and that you just became aware of the situation involving Ms. Amarsingh, what would you do?

What would you do if your doctor tried to diagnosis you : If you were a patient, how would you feel or what would you do if your doctor tried to diagnosis you with a clinical disorder in 7 minutes or less?

Suppose securities dealer sells repo to an investor : Suppose a securities dealer sells a repo (repurchase agreement) to an investor. Which of the following is not true?

Can someone guide me to the right direction with this : How many variables can you have in C# active at the same time? What is the upper limit?

How does the movie determine perception vs reality : Discuss perception vs. reality within your selected movie. How does the movie determine perception vs. reality?

Best indicator of weakness in nation banking system : Which would be the best indicator of weakness in a nation's banking system? Which is the most liquid?

Calculate and analyse financial ratios : PACC6000 - Financial Accounting - calculate and analyse financial ratios using actual reported data and perform horizontal and vertical analyses

User Account

All Pages