CFA Practice Question

There are 490 practice questions for this study session.

CFA Practice Question

If an institutional investor wants to borrow money for 30 days to finance a bond purchase, which of these is most likely to be the lowest loan rate available?

A. Term repo rate
B. Call money rate
C. Broker loan rate
Correct Answer: A

For institutional investors the term repo rate is lower than the cost of bank financing (i.e., broker loan rate or call money rate.)

User Contributed Comments 0

You need to log in first to add your comment.