For a particular security transaction, the agreement is 'repo' with the point of view of ______________?
Correct answer: A. security seller
- A. security seller
- B. security buyer
- C. security function
- D. security function
Explanation
A repo is described from the security seller's viewpoint: the seller receives cash now and promises to repurchase the security later. The buyer's viewpoint is called a reverse repo.
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About Business Finance
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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