A repo rate is
A) An uncollateralized rate
B) A rate where the credit risk is relative high
C) The rate implicit in a transaction where securities are sold and bought back later at a higher price
D) None of the above

Question

Quizplus · Accepted Answer

A repo transaction is one where a company agrees to sell securities today and buy them back at a future time.It is a form of collateralized borrowing.The credit risk is very low.

A Repo Rate Is