ACI

3I0-012 · Question #642

What is the buyers primary risk in a repo?

The correct answer is B. The credit risk on the repo counterparty. See the full explanation below for the reasoning.

Question

What is the buyers primary risk in a repo?

Options

AThe credit risk on the collateral
BThe credit risk on the repo counterparty
CThe legal risk on the contract
DThe operational risk on margin maintenance

How the community answered

(38 responses)

A
13% (5)
B
76% (29)
C
8% (3)
D
3% (1)

Community Discussion

No community discussion yet for this question.

Sign up to join the discussion

Full 3I0-012 Practice