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:

The correct answer is B. Breakage. See the full explanation below for the reasoning.

Question

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:

Options

ASplintering act
BBreakage
CRollover
DNone of the above

How the community answered

(40 responses)

A
5% (2)
B
85% (34)
C
3% (1)
D
8% (3)

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