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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Theola

1 days ago

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

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Maryln

6 days ago

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

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Laura

17 days 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

17 days ago

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

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Kimbery

21 days ago

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

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Louis

24 days ago

I think the answer is C) Rollover.

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