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This Agreement Occurs When a Security Is Sold with an Agreement

Question 136

Multiple Choice

This agreement occurs when a security is sold with an agreement to buy it back. The repurchase date is usually very short term, often one day. Dealers sell a portion of their securities to entities with cash reserves and agree to buy them back for the principal plus interest. What is this?


A) Certificate of deposit
B) Commercial Paper
C) Money market fund
D) Repurchase agreement

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