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American Bankers Association Exam CTFA Topic 5 Question 29 Discussion

Actual exam question for American Bankers Association's CTFA exam
Question #: 29
Topic #: 5
[All CTFA Questions]

When securities repurchased under repos commonly have a principal amount that differs from principal amount of the security originally sold under the agreement, is known as:

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Suggested Answer: B

Contribute your Thoughts:

Solange
23 days ago
Breakage, huh? Sounds like a real mess. Wouldn't want to be the one trying to untangle that knot.
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Selma
3 days ago
Yeah, breakage can definitely complicate things. It's important to keep track of all the details.
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Theola
1 months ago
Hmm, Breakage, eh? I guess that's what happens when you play fast and loose with the financial rules.
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Erasmo
10 days ago
I think it's called Splintering act when that happens.
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Virgie
17 days ago
Oh, I see. None of the above then.
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Cherry
19 days ago
Yeah, Breakage is when the principal amounts don't match up in a repo agreement.
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Micaela
21 days ago
Actually, it's A) Splintering act.
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Vinnie
27 days ago
No, I believe it's B) Breakage.
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Arthur
1 months ago
I think it's C) Rollover.
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Maryln
1 months ago
Breakage, eh? Looks like someone's been cooking the books again. Tsk tsk.
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Laura
2 months ago
I'm not sure, but I think it might be B) Breakage because it sounds like it could be related to the difference in principal amounts.
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Rosendo
2 months ago
Ah, the old repo game! Breakage, huh? Sounds like a wild ride to me.
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Anika
4 days ago
User 4: Definitely, it's all part of the game in the securities market.
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Felix
20 days ago
User 3: I think it's important to understand how rollover works in these situations.
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Jules
25 days ago
User 2: So true, it can get a bit messy in the repo market.
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Chantell
29 days ago
User 1: Yeah, breakage happens when the principal amounts don't match up.
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Kimbery
2 months ago
I agree with Louis, because rollover refers to the practice of repurchasing securities with a different principal amount.
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Louis
2 months ago
I think the answer is C) Rollover.
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