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Reverse Repo
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| - | A reverse repo, or reverse repurchase agreement, is the purchase of securities with an agreement to resell them at a higher price at some future date. It is basically a loan of the security at a specific rate of interest, the [[Repo Rate|repo rate]]. | + | A reverse repo, or reverse [[Repurchase Agreement|repurchase agreement]], is the purchase of securities with an agreement to resell them at a higher price at some future date. It is basically a loan of the security at a specific rate of interest, the [[Repo Rate|repo rate]]. |
Revision as of 12:50, 3 September 2009
A reverse repo, or reverse repurchase agreement, is the purchase of securities with an agreement to resell them at a higher price at some future date. It is basically a loan of the security at a specific rate of interest, the repo rate.