Answer Posted / n.pradeep
A financial transaction in which a dealer in effect borrows
money by selling securities and simultaneously agreeing to
buy them back at a higher price at a later time. The dealer
invests the money paid for the securities, hoping to get a
higher return than he owes on his obligation to repurchase
the securities. Repurchase agreements are commonly called
"repos," and they function in a way similar to a secured
loan with the securities serving as collateral. In a reverse
repurchase agreement, the dealer in effect loans money by
buying securities and agreeing to sell them back to the
customer at a higher price at a later date. In either case,
the difference between the bought and sold price of the
securities constitutes the yield on the transaction. See
dollar reverse repurchase agreement. Also see retail repos.
Is This Answer Correct ? | 0 Yes | 0 No |
Post New Answer View All Answers
What is the Net present value of eurekaforbes
How many number of SBI branches are present in India?
What according to you should the government do to eradicate poverty?
Explain finance committee with the help of flow chart?
Can I Get A Credit Card After Bankruptcy?
What according to you India should do to increase its exports?
Tell about sub- prime lending?
I want the sample question paper of po exam of sbi?
Merger of SBS with SBI, point of in your view. is this good dicition or bad by cent. govt./sbi.
How to prepare a function requirement document?
Why Are You Not Working Anywhere From Past 6 Months ?
Explain with any real or imaginary example, the four generic Strategy Alternatives for Marketing
Who governs RRBs?
When was NABARD set up?
What is the source of income of government?