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:

ASplintering act

BBreakage

CRollover

DNone of the above

Show Suggested Answer

Suggested Answer: B

by Barbra at May 06, 2022, 02:28 AM

Limited Time Offer

25%

Off

Get Premium CTFA Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Laura

8 days 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.

upvoted 0 times

...

Rosendo

8 days ago

Ah, the old repo game! Breakage, huh? Sounds like a wild ride to me.

upvoted 0 times

...

Kimbery

12 days ago

I agree with Louis, because rollover refers to the practice of repurchasing securities with a different principal amount.

upvoted 0 times

...

Louis

15 days ago

I think the answer is C) Rollover.

upvoted 0 times

...