Repo is said to have "double indemnity" due to the creditworthiness of the counterparty and:
A) A written legal agreement between the parties
B) The oversight of the transaction by the custodian of the collateral
C) The creditworthiness of the collateral
D) The right of close-out and set-off in an event of default

Question

Quizplus · Accepted Answer

The "double indemnity" in a repo transaction refers to the creditworthiness of both the counterparty and the collateral, providing two layers of security for the lender.

Repo Is Said to Have "Double Indemnity" Due to the Creditworthiness