A conventional Repurchase Agreement (RP)is ________ for the borrower than (as)a General Collateral Finance RP.

Question

Quizplus · Accepted Answer

A conventional Repurchase Agreement (RP) requires the borrower to deliver a specific security as collateral, while a General Collateral Finance RP allows the borrower to choose from a pool of securities that can be used as collateral. This flexibility makes the General Collateral Finance RP more advantageous for the borrower, as they can choose securities that are more valuable or easier to obtain. Therefore, the conventional RP is less flexible compared to the General Collateral Finance RP, making option B the correct answer.

A Conventional Repurchase Agreement (RP)is ________ for the Borrower Than