Repurchase Agreements Are

question 32

Multiple Choice

Repurchase agreements are

• A)long-term agreements to buy a government security that will then be sold back to the original seller.
• B)long-term agreements to buy a corporate bond that will then be sold back to the original seller.
• C)short term agreements in which the seller sells a government security with the simultaneous agreement to buy the security back at a higher price on a later date.
• D)short-term agreements to sell a corporate bond that will then be bought back by the original buyer.

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Definitions:

Organic Molecule

A compound containing carbon atoms covalently bonded to hydrogen atoms, often along with other elements such as oxygen and nitrogen, and found in living organisms.

Hydrogen

The lightest and most abundant chemical element in the universe, with symbol H and atomic number 1, commonly found in water and organic compounds.

Carbon

A chemical element with symbol C, capable of forming many compounds, essential for life, and a major component of biomolecules.

Polypeptide Chain

A linear organic polymer consisting of a large number of amino acid residues bonded together in a chain, forming part of or the whole of a protein molecule.