Reviewing Counterparties for Creditworthiness and Obtaining Master Trade Agreements and Credit

Reviewing counterparties for creditworthiness and obtaining master trade agreements and credit approval for counterparties before entering into a repurchase or reverse repurchase agreement Obtaining collateral from the counterparty Marking to market all collateral daily; if a deficit (within established guidelines) exists, additional collateral may be obtained from the counterparty Reconciling the repurchase and reverse repurchase subsidiary ledgers to the stock record and general ledger daily. Out-of-balances are recorded as suspense items and researched immediately These are actually:

A) Control and monitoring activities related to purchase and reverse purchase agreement
B) Review activities where broker-dealer -dealers finance proprietary or customer activity through collateralized bank
C) Auditors should be aware of the following control and monitoring activities typically associated with securities lending
D) None of these