_____________ is a short-term debt security sold by a business firm or financial institution to another business or institution where the seller agrees to buy back the security at a specified price and date.
A)A negotiable certificate of deposit (NCD)
B)A repurchase agreement
C)Commercial paper
D)A banker's acceptance
E)none of the above

Question

Quizplus · Accepted Answer

The described security is a repurchase agreement, also known as a repo. A negotiable certificate of deposit (NCD) is a type of time deposit, commercial paper is a type of unsecured debt issued by corporations, and a banker's acceptance is a financial instrument used in international trade finance. Therefore, none of the other options fit the given description.

_____________ Is a Short-Term Debt Security Sold by a Business