ACI
3I0-012 · Question #739
What are the primary reasons for taking an initial margin in a classic repo?
The correct answer is C. Collateral illiquidity and counterparty risk. See the full explanation below for the reasoning.
Question
What are the primary reasons for taking an initial margin in a classic repo?
Options
- ACounterparty risk and operational risk
- BCounterparty risk and legal risk
- CCollateral illiquidity and counterparty risk
- DCollateral illiquidity and legal risk
How the community answered
(15 responses)- A13% (2)
- B7% (1)
- C73% (11)
- D7% (1)
Community Discussion
No community discussion yet for this question.