In a repo transaction (or repurchase agreement), the one "buying" the collateral asset (with the promise of selling it back soon

Question

algol [13]

3 years ago

7

In a repo transaction (or repurchase agreement), the one "buying" the collateral asset (with the promise of selling it back soon

) is the:

Business

1 answer:

Gwar [14] · Answer 1 · 2022-07-21T03:01:45+03:00

Answer:

The Borrower

Explanation:

A repurchase agreement (repo) is a form of short-term borrowing for dealers in government securities. In the case of a repo, a dealer sells government securities to investors, usually on an overnight basis, and buys them back the following day.