Free preview · 5 questions

Try Credit Advanced

No sign-up. No timer. Five questions sampled at random from the full 18-question test. See how you stack up before requesting access for the full assessment and a verifiable certificate.

Question 1 of 5

0 of 5 answered

A repo trade pledges $100m of Treasuries against $98m of cash. The implied leverage on the borrower's $2m of equity is:

1.02x50x — calculated as 1 / haircut, where haircut = $2m / $100m = 2%10x100x