Securities Lending Refers to the Practice of Temporarily Transferring Securities

question 407

Multiple Choice

Securities lending refers to the practice of temporarily transferring securities to a borrower with the intent that the lender will buy them back at a future date. The borrower is required to return the securities to the lender, either on demand or at a specified time. A major reason for securities lending is:

• A) To circulate the issued capital
• B) To facilitate short sale
• C) To facilitate over the counter trade
• D) To fasten secondary market trading

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Definitions:

Immune System

A complex network of cells, tissues, and organs that work together to defend the body against harmful pathogens and diseases.

Lymphocytes

A type of white blood cell vital to the immune system, responsible for defending the body against infections and diseases by recognizing and targeting pathogens.

Sympathetic Nervous System

A part of the autonomic nervous system that activates what is often termed the fight or flight response during stressful situations.

Psychoneuroimmunology

The study of how psychological factors, the nervous system, and the immune system interact with each other.