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SOFE SOFA-CFE Exam - Topic 1 Question 103 Discussion

Posted by Judy on Nov 16, 2024 at 12:41 PM

Dollar repurchase agreements are commonly referred to as dollar roll transactions.

Suggested Answer: B

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38 comments · newest first
DE
Deandrea 11 months ago
I always thought they were the same, thanks for clarifying!
MA
Margurite 11 months ago
Nope, dollar rolls involve selling and buying back securities.
YE
Yesenia 11 months ago
Wait, really? I thought they were interchangeable.
LA
Laine 12 months ago
Totally agree, dollar rolls are not the same as repos!
CA
Carman 12 months ago
That's actually false, they're different things.
AR
Ardella 1 year ago
I remember something about how dollar rolls are used in the context of mortgage-backed securities, but I can't recall if they are the same as repurchase agreements.
RE
Reid 1 year ago
I'm not sure, but I think dollar rolls involve a different kind of transaction than repurchase agreements.
SO
Son 1 year ago
I feel like I saw a question about this in our practice exam, and it was definitely about the differences between the two.
HE
Helga 1 year ago
I think dollar repurchase agreements are different from dollar rolls, but I can't quite remember the specifics.
JE
Jeannetta 1 year ago
True, for sure. I remember learning in class that dollar repurchase agreements and dollar roll transactions are used interchangeably to refer to the same type of transaction. No need to overthink this one.
VA
Vallie 1 year ago
Okay, let me think this through step-by-step. A dollar repurchase agreement involves the sale of securities with an agreement to repurchase them at a later date, right? And a dollar roll is a type of repo transaction... I think the key is whether they are considered the exact same thing. I'll go with False just to be safe.
CI
Ciara 1 year ago
Hmm, I'm not totally sure about this. I know dollar repos and dollar rolls are related, but I can't remember if they're exactly the same thing. I'll have to think this through carefully.
NI
Nikita 1 year ago
I'm pretty confident about this one. Dollar repurchase agreements are definitely the same as dollar roll transactions, so I'll select True.
RA
Raina 1 year ago
Wait, are we talking about actual dollar bills here? I'm so confused, but I'll go with B just to be safe.
AN
An 1 year ago
↳ replying to Raina
Yes, you're right. Dollar repurchase agreements involve the sale of securities with an agreement to repurchase them at a later date.
BR
Brinda 1 year ago
↳ replying to Raina
I think it's False too, dollar repurchase agreements are not about physical dollar bills.
RE
Ressie 1 year ago
↳ replying to Raina
B) False
SE
Serina 1 year ago
↳ replying to Raina
A) True
TI
Tiffiny 1 year ago
This is too easy, the answer has to be A, True. Everyone knows dollar repos and dollar rolls are interchangeable terms.
IL
Ilda 1 year ago
↳ replying to Tiffiny
A
BR
Brynn 1 year ago
Hold up, I thought dollar rolls were way more complicated than regular repurchase agreements. Gotta be B, False.
CR
Craig 1 year ago
↳ replying to Brynn
B) False
MI
Mindy 1 year ago
↳ replying to Brynn
Yeah, dollar rolls involve buying and selling securities with an agreement to repurchase them at a later date. It's definitely more complex than regular repurchase agreements.
RO
Rosamond 1 year ago
↳ replying to Brynn
B) False
ME
Mertie 1 year ago
↳ replying to Brynn
A) True
TR
Truman 2 years ago
Hmm, this one's tricky. I think the answer is A, True. Aren't dollar repos and dollar rolls basically the same thing?
NO
Noah 1 year ago
↳ replying to Truman
It's easy to mix them up, but they are essentially the same thing.
CL
Clemencia 1 year ago
↳ replying to Truman
The answer is A) True. Dollar repurchase agreements are commonly referred to as dollar roll transactions.
TH
Theodora 1 year ago
↳ replying to Truman
Dollar repos and dollar rolls are indeed very similar, so it can be confusing.
AN
An 1 year ago
↳ replying to Truman
Yes, you are correct. Dollar repurchase agreements are commonly referred to as dollar roll transactions.
ZE
Zena 2 years ago
I think it's True. Dollar repurchase agreements involve selling securities with an agreement to repurchase them at a later date, similar to a dollar roll transaction.
RE
Rene 2 years ago
False. Dollar repurchase agreements are not the same as dollar roll transactions.
MA
Marnie 2 years ago
Aha, a classic trick question! I bet the answer is B, False. Dollar repos are definitely not the same as dollar roll transactions.
CO
Corinne 1 year ago
↳ replying to Marnie
No problem! It can be confusing, but now you know the difference.
DE
Dean 1 year ago
↳ replying to Marnie
Oh, I see. Thanks for clarifying that!
JA
Jamey 1 year ago
↳ replying to Marnie
Actually, the answer is A, True. Dollar repurchase agreements are commonly referred to as dollar roll transactions.
DA
Danilo 2 years ago
↳ replying to Marnie
False
AN
An 2 years ago
True. Dollar repurchase agreements are commonly referred to as dollar roll transactions.
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