The following are among sources of funds for securities dealers:
A) Demand loans from banks
B) Purchases of securities at auction
C) Borrowings under Repurchase Agreements
D) All of the above
E) Choices A and C only

Question

Quizplus · Accepted Answer

Securities dealers often fund their operations through demand loans from banks and borrowings under repurchase agreements (repos), where they sell securities with an agreement to repurchase them at a later date. Purchases of securities at auction are not a source of funds but rather a use of funds.

The Following Are Among Sources of Funds for Securities Dealers