what is reverse repo?

Answer Posted / sonali

When a seller enters into a Repo agreement i e he sells a
instrument to the buyer with an agreement to buy it agn in
future at specified date and price, the same transaction
frm buyer's point of view is called as reverse repo i e the
buyer buys an instrument with an agreement to sell it back
to the seller at specified date and price.

Is This Answer Correct ?    12 Yes 16 No



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