American Bankers Association Exam CTFA Topic 5 Question 29 Discussion

Actual exam question for American Bankers Association's CTFA exam

Question #: 29
Topic #: 5

[All CTFA Questions]

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:

ASplintering act

BBreakage

CRollover

DNone of the above

Show Suggested Answer

Suggested Answer: B

by Barbra at May 06, 2022, 02:28 AM

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Solange

1 months ago

Breakage, huh? Sounds like a real mess. Wouldn't want to be the one trying to untangle that knot.

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Luisa

14 days ago

I haven't personally, but I've heard it can be a real challenge to sort out. It's best to avoid it if possible.

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Haydee

15 days ago

I agree, it can be a headache to deal with. Have you ever had to handle a situation involving breakage?

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Selma

18 days ago

Yeah, breakage can definitely complicate things. It's important to keep track of all the details.

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Theola

2 months ago

Hmm, Breakage, eh? I guess that's what happens when you play fast and loose with the financial rules.

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Isidra

5 hours ago

Actually, it's A) Splintering act.

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Domingo

2 days ago

No, I believe it's B) Breakage.

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Stephane

10 days ago

I think it's C) Rollover.

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Adria

13 days ago

Actually, it's called Rollover when the principal amounts differ in a repo agreement.

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Erasmo

25 days ago

I think it's called Splintering act when that happens.

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Virgie

1 months ago

Oh, I see. None of the above then.

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Cherry

1 months ago

Yeah, Breakage is when the principal amounts don't match up in a repo agreement.

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Micaela

1 months ago

Actually, it's A) Splintering act.

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Vinnie

1 months ago

No, I believe it's B) Breakage.

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Arthur

2 months ago

I think it's C) Rollover.

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Maryln

2 months ago

Breakage, eh? Looks like someone's been cooking the books again. Tsk tsk.

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Laura

2 months ago

I'm not sure, but I think it might be B) Breakage because it sounds like it could be related to the difference in principal amounts.

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Rosendo

2 months ago

Ah, the old repo game! Breakage, huh? Sounds like a wild ride to me.

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Anika

19 days ago

User 4: Definitely, it's all part of the game in the securities market.

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Felix

1 months ago

User 3: I think it's important to understand how rollover works in these situations.

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Jules

1 months ago

User 2: So true, it can get a bit messy in the repo market.

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Chantell

1 months ago

User 1: Yeah, breakage happens when the principal amounts don't match up.

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Kimbery

2 months ago

I agree with Louis, because rollover refers to the practice of repurchasing securities with a different principal amount.

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Louis

3 months ago

I think the answer is C) Rollover.

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