单选题

In a repurchase agreement, the repo margin will be lower the:

A、 higher the quality of the collateral.
B、 lower the demand for the collateral.
C、 higher the supply of the collateral.

【正确答案】 A

【答案解析】

The higher the quality of the collateral, the lower the difference between the market value of the security used as collateral and the value of the loan--that is, the repo margin.