The repurchase agreement market dried up during the Great Recession because:

a. Counterparty risk increased, which caused normal lending channels to fail and lines of business to shrink.
b.The collateral backing these agreements fell in value, causing large massive calls for additional collateral.
c. Many participants were uncertain about the value of the securities backing these agreements.
d. All of the above.

.D

Economics

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Refer to Figure 4.4. At an interest rate of 7%,

A) Foreign borrowers have an incentive to offer lenders in the United States an interest rate greater than 7%. B) Foreign lenders have an incentive to offer borrowers in the United States an interest rate less than 7%. C) U.S. lenders have an incentive to offer borrowers in the rest of the world an interest rate of 7%. D) U.S. borrowers have an incentive to offer U.S. lenders an interest rate greater than 7%.

Economics

In competitive price-taker markets, if one firm raises its price,

a. others will follow b. that firm will increase its revenues c. that firm will lose revenues because other firms will not follow d. all consumers will be adversely affected e. the market demand curve will shift

Economics