________ are short-term loans in which Treasury bills serve as collateral.
A)Repurchase agreements
B)Negotiable certificates of deposit
C)Federal funds
D)U)S. government agency securities

Question

Quizplus · Accepted Answer

Repurchase agreements, also known as repos, are short-term loans in which Treasury bills serve as collateral. The borrower sells the T-bills to the lender and agrees to repurchase them at a higher price at the end of the loan term. This type of arrangement is commonly used by banks and other financial institutions to manage their short-term funding needs. Negiotiable certificates of deposit and federal funds involve different forms of borrowing and lending, while U.S. government agency securities are not always used as collateral in short-term loans.

________ Are Short-Term Loans in Which Treasury Bills Serve as Collateral