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Basic Question 0 of 7
A non-dealer borrowing funds through the overnight sale of securities is an example of ______.
B. an overnight repurchase agreement
C. a reverse repurchase agreement
A. a term repurchase agreement
B. an overnight repurchase agreement
C. a reverse repurchase agreement
User Contributed Comments 5
| User | Comment |
|---|---|
| BlueRose | What's wrong with B? |
| danlan | A and B don't apply to NON-dealers. |
| houstcarr | It doesn't matter whether a party to a transaction is a dealer or not. whoever is borrowing cash is doing a repo, whoever is lending is doing a reverse repo. |
| Albireo | How come the answer says B if the correct one is C? |
| breh | @Albireo: C is a reverse repo. |
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Learning Outcome Statements
compare primary and secondary fixed-income markets to equity markets
CFA® 2026 Level I Curriculum, Volume 4, Module 3.