Which of the following are typical repurchase agreement maturities?Check all that apply.

1 day

1 year

3 months

180

Which of the following are characteristics of repurchase agreements?Check all that apply.

Banks and savings institutions are common borrowers and investors in repos, whereas money market funds are common investors in these agreements.

Of all the money market securities, repurchase agreements have the most active secondary market.

The size of the repo market is approximately $10 trillion.

Most repo transactions are backed by government securities.

Suppose Janet initially purchased securities at a price of $39,560,000 while agreeing to sell them back to the original owner at a price of $40,000,000 at the end of a 6-month period. Assuming a 360 day year, the yield (or repo rate) on this repurchase agreement is:

2.15%

2.22%

2.31%

2.38%