Securities that banks sell and agree to repurchase are known as

Name: Securities that banks sell and agree to repurchase are known as
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Securities that banks sell and agree to repurchase are known as repurchase agreements, or repos. The bank sells the security (such as a Treasury bond) to an investor, agreeing to buy it back at a slightly higher price at a predetermined date. This allows the bank to raise short-term funds and the investor to earn a return.

Securities That Banks Sell and Agree to Repurchase Are Known