A transaction where a dealer agrees to sell and subsequently repurchase a security from another deal is called ________.
A)a bank accepted bond
B)a repurchase agreement
C)a Treasury note
D)a time deposit

Question

Quizplus · Accepted Answer

A repurchase agreement (also known as a repo) is a transaction where one party sells a security to another party with a promise to repurchase it at a later date at a higher price, typically within a few days or weeks. This allows the seller to obtain short-term financing while the buyer earns a return in the form of interest.

A Transaction Where a Dealer Agrees to Sell and Subsequently