Why should I choose AnalystNotes?
Simply put: AnalystNotes offers the best value and the best product available to help you pass your exams.
Basic Question 12 of 15
A non-dealer borrowing funds through the overnight sale of securities is an example of ______.
B. an overnight repurchase agreement
C. a reverse repurchase agreement
A. a term repurchase agreement
B. an overnight repurchase agreement
C. a reverse repurchase agreement
User Contributed Comments 5
| User | Comment |
|---|---|
| BlueRose | What's wrong with B? |
| danlan | A and B don't apply to NON-dealers. |
| houstcarr | It doesn't matter whether a party to a transaction is a dealer or not. whoever is borrowing cash is doing a repo, whoever is lending is doing a reverse repo. |
| Albireo | How come the answer says B if the correct one is C? |
| breh | @Albireo: C is a reverse repo. |
I am using your study notes and I know of at least 5 other friends of mine who used it and passed the exam last Dec. Keep up your great work!
Barnes
Learning Outcome Statements
compare short-term funding alternatives available to corporations and financial institutions
CFA® 2024 Level I Curriculum, Volume 4, Module 4.