Which of the Following Money Market Investments Is Essentially a Loan

question 84

Multiple Choice

Which of the following money market investments is essentially a loan arrangement wherein a securities dealer is the "borrower" and the investor is the "lender"? The investor buys securities from the securities dealer, with an agreement to sell the securities back to the dealer at a later date for a specified higher price.

• A) certificates of deposit
• B) commercial paper
• C) banker's acceptance
• D) repurchase agreement
• E) Treasury bills

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