The collateral used for repos and reverse repos is (are)
A) corporate securities.
B) autos.
C) homes.
D) government bonds.

Question

Quizplus · Accepted Answer

The collateral used for repos and reverse repos is generally government bonds because they are highly liquid and low-risk assets. This allows for ease of trading and ensures that the parties involved in the transaction can quickly and easily access the necessary funds or securities.

The Collateral Used for Repos and Reverse Repos Is (Are)