If a borrower takes out a $200 million loan in a repo agreement and is asked to post $220 million of mortgage-backed securities as collateral, the "haircut" is
A) 5%.
B) 10%.
C) 20%.
D) 50%.
B
You might also like to view...
One of the characteristics of financial repression is
(a) negative real interest rates. (b) lack of credit rationing. (c) capital flowing to the highest rate of return. (d) all of the above. (e) none of the above.
The cost to a firm of producing one more unit of output
A) usually exceeds the firm's price. B) is significantly less than the firm's price for purely competitive firms operating in long-run equilibrium. C) usually equals the firm's price for monopolistically competitive firms. D) is the firm's marginal cost.
If bus travel is an inferior good, then its income elasticity of demand will be:
a. strictly greater than one. b. positive. c. equal to zero. d. negative.
When a nation imposes a blanket standard on imports, it refers to policies that:
A. impose standards imposed on all imports. B. impose standards on specific countries. C. restrict the importation of specific goods. D. All of these are true.