ACI
3I0-012 · Question #155
Repo is said to have "double indemnity" due to the creditworthiness of the counterparty and:
The correct answer is C. The creditworthiness of the collateral. See the full explanation below for the reasoning.
Question
Repo is said to have "double indemnity" due to the creditworthiness of the counterparty and:
Options
- AA written legal agreement between the parties
- BThe oversight of the transaction by the custodian of the collateral
- CThe creditworthiness of the collateral
- DThe right of close-out and set-off in an event of default
How the community answered
(26 responses)- A12% (3)
- B8% (2)
- C77% (20)
- D4% (1)
Community Discussion
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