The right answer or rather the best answer listed below:
Understanding Today's Crossword Puzzle
Today's crossword clue is "Default consequence" and the answer for this clue is "REPO". Let's understand why this answer is a fitting match for the clue.
1. Default: In financial terms, "default" refers to a situation where a borrower fails to meet their debt obligations, such as repaying a loan or interest on time.
2. Consequence: A consequence is an outcome or result that arises from a particular action or situation.
Combining both elements, "Default consequence" suggests that there is an outcome or result that occurs due to a default situation. So, what answer fits this description?
Answer: REPO
Explanation:
- Repo: Short for "repurchase agreement," a repo is a financial transaction where one party (usually a bank) sells a security (such as government bonds) to another party (usually an investor) with the agreement to buy it back at a later date.
In the context of the crossword clue, "Default consequence," the answer "REPO" works because a default situation can lead to a repossession of assets or collateral by the lender. When a borrower fails to repay a loan, the lender may initiate the repossession process to recover their investment.
To summarize, the answer "REPO" perfectly aligns with the clue "Default consequence" due to the correlation between default situations and the subsequent repossession of assets or collateral by the lender.
The Crossword clue "Default consequence" published 3 time/s & has 1 answer/s.
Crossword | Date | Answer |
New York Times | 28 June 2020 | REPO |
L.A. Times Daily | 14 August 2016 | REPO |