A broker-dealer or other financial institution transfers cash to a government in exchange for securities and the government agrees to repay the cash plus interest in exchange for return of the same securities.From the government's point of view, this transaction is a

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This transaction is a reverse repurchase agreement, where the government is the seller of the securities and the financial institution is the buyer. The government is borrowing cash from the financial institution and agreeing to repurchase the securities at a later date with interest.

A Broker-Dealer or Other Financial Institution Transfers Cash to a Government