Which of the following securities is most likely to be used in a repo transaction?

Name: Which of the following securities is most likely to be used in a repo transaction?
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Question

Quizplus · Accepted Answer

Treasury bills are the most commonly used security in repo transactions as they are considered to be the safest and most liquid securities available in the market. Commercial paper and certificates of deposit may also be used but are less common, while common stock is not suitable for use in repo transactions.

Which of the Following Securities Is Most Likely to Be