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

Question

Quizplus · Accepted Answer

Repurchase agreements, also known as repos or RP, are short-term loans in which one party sells a security, like a Treasury bill, to another party and agrees to repurchase the security at a higher price at a later date. In this way, the Treasury bill serves as collateral for the loan.

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