When the Trading Desk Buys Securities on a Self-Reversing, Temporary

question 14

Multiple Choice

When the trading desk buys securities on a self-reversing, temporary basis, this is called which of the following?

• A)a reverse repurchase agreement
• B)a system repurchase agreement
• C)an outright transaction
• D)a temporary buy back

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Definitions:

Partial Year

A term referring to a portion of a year, often used in the context of accounting and financial analysis for periods less than 12 months.

Gain or Loss

The financial result from selling an asset for more (gain) or less (loss) than its carrying amount on the books.

Disposal

The process of getting rid of an asset, including selling, scrapping, or another method of removal from the company's possession.

Accumulated Depreciation

The total amount of a tangible asset's cost that has been allocated as depreciation expense over its useful life up to a specific date.