Repurchase agreements are usually used by banks that:

Question

Quizplus · Accepted Answer

Repurchase agreements (REPOs) typically involve banks borrowing money for short periods, usually overnight, to meet their needs for liquidity or to manage their cash flow. This means option B is the best choice, as it accurately reflects the typical usage of repurchase agreements by banks. Other options are not accurate, as banks typically have positive net worth, can obtain financing from other sources, and do not use REPOs for long-term financing purposes.

Repurchase Agreements Are Usually Used by Banks That