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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:
Suggested Answer: B
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31 comments · newest first
CR
Cristen
6 months ago
I’m with C) Rollover. It’s a common term in finance.
KA
Karol
6 months ago
Breakage makes sense. It’s about the difference in amounts.
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Noel
6 months ago
D) None of the above could be a trick option.
TA
Talia
6 months ago
A) Splintering act? Never heard of that.
EZ
Ezekiel
6 months ago
I think it's B) Breakage. Sounds right.
TH
Theodora
6 months ago
Just to clarify, it's B) Breakage.
ST
Steffanie
7 months ago
Wait, is this really a thing? Sounds odd.
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Tresa
7 months ago
Definitely Breakage, no doubt.
JU
Justine
7 months ago
I thought it was Rollover!
HO
Hollis
8 months ago
It's called Breakage, right?
UN
Una
8 months ago
I'm going with B) Breakage. Anything else would just be breaking the repo, am I right?
LE
Lenna
8 months ago
Haha, "Splintering act"? What kind of made-up term is that? Definitely not the right answer.
DO
Dorian
8 months ago
B) Breakage, easy peasy. Who comes up with these trick questions anyway?
LI
Lizbeth
8 months ago
Hmm, I'm not sure about this one. I'll have to go with C) Rollover just to be different.
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Raul
8 months ago
D) None of the above? Really? That can't be right. It's definitely B) Breakage.
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Pok
9 months ago
I think the answer is B) Breakage. That's the term used when the principal amounts differ.
AL
Alishia
9 months ago
I don't think it's "splintering act," but I'm not confident about the other options either. I should have gone over those definitions again.
AN
Angella
9 months ago
This sounds familiar, but I keep mixing up "rollover" and "breakage." I wish I had reviewed those terms more closely.
AN
Angella
9 months ago
Breakage, that's the one! I'm pretty confident that's the correct term for when the principal amounts differ in a repo transaction. Time to move on to the next question.
JE
Jenelle
9 months ago
Ugh, I'm a bit lost on this one. Repurchase agreements can get pretty complex. I'll have to make an educated guess and hope for the best.
PA
Patrick
9 months ago
Ah, I remember learning about this in class. I think it has to do with the principal amount not matching between the original sale and repurchase. Let me double-check that.
NI
Nickole
10 months ago
I remember practicing a question about repos, and I think "breakage" was mentioned in that context, but I can't recall if it was the right answer.
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Mona
10 months ago
I think this might be related to how repos can involve different amounts, but I'm not entirely sure which term applies.
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Gladis
10 months ago
I lean towards C) Rollover. It fits the context.
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Norah
11 months ago
Okay, let's see. I know repos involve the sale and repurchase of securities, so this is likely related to that. I'll have to review my notes on the specific terminology.
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Blossom
11 months ago
Hmm, this one seems a bit tricky. I'll need to think through the key differences between the options carefully.
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Alison
5 months ago
I’ll go with None of the above.
BO
Boris
5 months ago
Splintering act sounds unfamiliar.
BE
Benedict
5 months ago
I think it might be Rollover.
MA
Mari
10 months ago
I’m leaning towards Breakage.
KA
Kami
10 months ago
This is definitely a tricky one!