A___________ is not a specific security but an arrangement whereby a bank or security dealer sellsspecific marketable securities to a firm and agrees to repurchase the securities in the future.

Question

Quizplus · Accepted Answer

The arrangement described in the question is a repurchase agreement (also known as a repo). This involves the sale of marketable securities with an agreement to repurchase them at a later date, typically within a few days or weeks. This allows the firm to temporarily invest its funds in the securities and earn a return, while the bank or dealer earns a profit on the transaction. The other choices (A, B, and D) do not involve this specific arrangement.

A___________ Is Not a Specific Security but an Arrangement Whereby