A repo is a:
A)share of stock in a depository bank.
B)share of stock in a shadow bank.
C)long-term loan.
D)short-term loan.

Question

Quizplus · Accepted Answer

A repo, or repurchase agreement, is a short-term loan in which one party sells a security (usually a government bond) to another party with the agreement to buy it back at a later date at a slightly higher price. This higher price represents the interest on the loan. Hence, repo is a form of short-term borrowing in the money market.

A Repo Is A