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NEW QUESTION: 1
Which of the following correctly describes a "reverse repo"?
A. A repo with an undefined maturity period
B. Lending cash with securities as a collateral
C. Borrowing cash while posting securities as a collateral
D. An asset swap that is offset by an identical but opposite swap
Answer: B
Explanation:
Explanation
A repo, or a repurchase agreement, is the lending of securities in return for cash, with an agreement to buy the securities back at a later date at the borrowed amount plus interest. It is a form of collateralized borrowing. A
'reverse repo' is exactly the opposite of a repo transaction, ie where cash is lent and securities borrowed.
Therefore Choice 'b' is the correct answer. In any repo transaction, the counterparty will therefore always have a 'reverse repo' position.
A reverse repo is a useful transaction - not merely for the purpose of lending short term funds, but more importantly to enable short positions. For example, if an investor wishes to short a bond, he can borrow the bond on a 'reverse repo' and sell it. Of course, he will have to return the bond when the reverse repo matures, but hopefully by that time prices of the bond would have fallen to allow him to do so profitably. Short positions in physical bonds are nearly always facilitated by reverse repos.

NEW QUESTION: 2
Which two statements are true about Database as a Service (DBaaS) or about Database Schema Service in Oracle Public Cloud?
A. With DBaaS, you get a dedicated database instance or instances.
B. With Database Schema Service, the schema may be in an Oracle Database 12c pluggable.
C. With Database Schema Service, the schema or schemas may be in the same database as other schemas that belong to other subscribers.
D. With Database Schema Service, there is a separate database for each schema.
E. With DBaaS, you cannot decide when to patch the database home.
Answer: A,C
Explanation:
Database Schema Service uses schema isolation to implement multi-tenancy, which allows full transparency while still providing efficient use of database resources. The Oracle Database is, at its core, a multiuser system for sharing data, so Database Schema Service simply uses the capabilities built up for the Oracle Database to share resources among multiple Database Schema Service customers.


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