For a particular security transaction, the agreement is classified as 'reverse repo' with the point of view of ____________?
Correct answer: B. security buyer
- A. security liability
- B. security buyer
- C. security seller
- D. security function
Explanation
A reverse repo is named from the security buyer's viewpoint: the buyer purchases the security and agrees to sell it back later. From the seller's viewpoint, the same transaction is called a repo.
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Business finance explains how organisations plan, obtain and use money while balancing risk, return and liquidity. Topics include financial statements, time value of money, budgeting, working capital, capital structure, sources of finance, investment appraisal and cost of capital. Capital budgeting evaluates long-term projects, whereas working capital manages day-to-day operations.
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