4-51 The largest category of liabilities of broker-dealers as of the beginning of 2009 was

Question

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Securities sold under repurchase agreements are typically the largest category of liabilities for broker-dealers as they enter into these agreements to borrow securities and cash to finance their trading activities. This liability represents an obligation to return the securities back to the counterparty at a future date for the agreed-upon repurchase price.

4-51 the Largest Category of Liabilities of Broker-Dealers as of the Beginning