Podcast
Questions and Answers
- Repo interest is computed on
- Repo interest is computed on
- A. Discounted interest basis.
- B. Simple discounted interest basis.
- C. Add-on interest basis. (correct)
- D. Compounded interest basis.
- Relevant interest on a Repo will be paid by the borrower
- Relevant interest on a Repo will be paid by the borrower
- A. On the discounted basis at the beginning of the Repo.
- B. At maturity of the Repo. (correct)
- C. As periodical coupon rate.
- D. As the capital gains.
Repo maturity will be
Repo maturity will be
- A. Equal to the Repo lending amount.
- B. Lower than the Repo lending.
- C. Higher than the Repo lending value. (correct)
- As per the technical definition, which is the borrowing party in a Repo.
- As per the technical definition, which is the borrowing party in a Repo.
- Why Repo transaction is recognized as security with very low default risk.
- Why Repo transaction is recognized as security with very low default risk.
- Normal shape of a yield curve is
- Normal shape of a yield curve is
- When short term yields are lower than the long term yields in the economy, yield curve will get
- When short term yields are lower than the long term yields in the economy, yield curve will get
- In a flat yield curve.
- In a flat yield curve.
- Owners of the corporates will provide,
- Owners of the corporates will provide,
- As a provider of funds to a corporate, which will assume the highest risk,
- As a provider of funds to a corporate, which will assume the highest risk,