Explain how reverse repurchase agreements allowed Robert Citron to leverage the OCIP portfolio. Then explain how this leverage led to mammoth OCIP losses
What will be an ideal response?
Reverse repurchase agreements allowed Robert Citron to borrow by selling existing fixed-income assets with the obligation to repurchase them at fixed prices in the future. Using reverse repos, Citron purchased and sold investment assets many times, which increased OCIP's portfolio so that it had almost three times the assets as it had equity. When losses on these assets rose, the return on OCIP's equity plummeted.
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Only in communist countries do governments own the factors of production.
Answer the following statement true (T) or false (F)
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What will be an ideal response?
When is parol evidence admitted in court?
What will be an ideal response?