Which of the following is most like a short-term collateralised loan?
A)Certificate of deposit
B)Repurchase agreement
C)Banker's acceptance
D)Commercial paper

Question

Quizplus · Accepted Answer

A repurchase agreement (repo) is a form of collateralized loan where the borrower sells securities to the lender and agrees to repurchase them later at an agreed-upon price. This is similar to a short-term collateralized loan because the securities serve as collateral to secure the loan. Certificates of deposit (A), banker's acceptances (C), and commercial paper (D) are all short-term investments or financing instruments, but they are not collateralized loans.

Which of the Following Is Most Like a Short-Term Collateralised