Identify the strategies for achieving leverage in long positions:

I. Securities may be purchased with borrowed funds using a bank loan from the broker.

This is a common method known as margin trading, where an investor borrows money from a broker to purchase securities.

II. Securities may be borrowed on margin by taking a loan from a broker.

This is another form of margin trading where the securities themselves are used as collateral for the loan.

III. Securities may be purchased and used in a repo transaction to generate cash for further security purchases.

In a repurchase agreement (repo), securities are sold with an agreement to buy them back at a later date, providing immediate liquidity for further investments.

IV. The bank may enter into a derivative transaction, such as a total return swap, that requires little to no collateral but mimics the performance of a long or short position in the underlying instrument.

Derivatives like total return swaps allow for exposure to the performance of an asset without owning it, often with minimal collateral requirements.

Explanation:

All the listed strategies (I, II, III, IV) are valid methods for a bank to achieve leverage in long positions. They involve different mechanisms of borrowing funds or utilizing existing assets to increase the potential return on investment.