A firm that has large securities holdings that wishes to raise money for a short length of time may be able to find the cheapest financing from which of the following?
A) Reverse repurchase agreement
B) Banker's acceptance
C) Commercial paper
D) Repurchase agreement

Question

Quizplus · Accepted Answer

A repurchase agreement (repo) allows the firm to sell securities with an agreement to repurchase them at a later date, typically at a lower cost than other short-term financing options.

A Firm That Has Large Securities Holdings That Wishes to Raise