ExamGecko
Home Home / ABA / CTFA

ABA CTFA Practice Test - Questions Answers, Page 90

Question list
Search
Search

In a yield-maintenance agreement:

A.
the securities repurchased may have a different stated interest rate from that of the securities sold and are generally priced to result in substantially the same yield.
A.
the securities repurchased may have a different stated interest rate from that of the securities sold and are generally priced to result in substantially the same yield.
Answers
B.
the securities repurchased may have the same stated interest rate from that of the securities sold and are generally priced to result in substantially the same yield.
B.
the securities repurchased may have the same stated interest rate from that of the securities sold and are generally priced to result in substantially the same yield.
Answers
C.
the securities repurchased may have a different stated interest rate from that of the securities sold and are generally priced to result in substantially the different yield.
C.
the securities repurchased may have a different stated interest rate from that of the securities sold and are generally priced to result in substantially the different yield.
Answers
D.
the securities repurchased may have a same stated interest rate from that of the securities sold and are generally priced to result in substantially the different yield.
D.
the securities repurchased may have a same stated interest rate from that of the securities sold and are generally priced to result in substantially the different yield.
Answers
Suggested answer: B

What limits the repurchase price to a stipulated percentage of the face amount of the certificate?

A.
Price-cap provision
A.
Price-cap provision
Answers
B.
Investment provision
B.
Investment provision
Answers
C.
Limit provision
C.
Limit provision
Answers
D.
Par cap provision
D.
Par cap provision
Answers
Suggested answer: D

____________ agreements may contain par cap provisions that could significantly alter the economics of the transactions.

A.
Yield-maintenance
A.
Yield-maintenance
Answers
B.
Price-cap
B.
Price-cap
Answers
C.
Fixed-coupon
C.
Fixed-coupon
Answers
D.
Accounting
D.
Accounting
Answers
Suggested answer: A

In what, securities involve in repos are not delivered on the settlement date of the agreement and the contract may be extended upon mutual agreement of the buyer-lender and sellerborrower.

A.
Financial servicing
A.
Financial servicing
Answers
B.
Price-cap
B.
Price-cap
Answers
C.
Rollover
C.
Rollover
Answers
D.
Purchasing agreements
D.
Purchasing agreements
Answers
Suggested answer: C

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:

A.
Splintering act
A.
Splintering act
Answers
B.
Breakage
B.
Breakage
Answers
C.
Rollover
C.
Rollover
Answers
D.
None of the above
D.
None of the above
Answers
Suggested answer: B
Total 895 questions
Go to page: of 90