In case of a default on a repo by the seller:
A) The buyer can liquidate the collateral
B) The buyer has to liquidate the collateral
C) The buyer cannot liquidate the collateral until th
D) A court is appointed to decide what happens to the

Question

Quizplus · Accepted Answer

In case of default on a repo by the seller, the buyer has the right to liquidate the collateral. This is because the collateral belongs to the buyer until the seller pays off the loan. The buyer can sell the collateral to recover the amount of the loan and any additional costs associated with the sale.

In Case of a Default on a Repo by the Seller