Repurchase agreements having maturity of longer term have denominations of

A. $40 million

B. $10 million

C. $20 million

D. $30 million

Answer: Option B

Solution(By Examveda Team)

Repurchase agreements having maturity of longer term have denominations of $10 million. A repurchase agreement (repo) is a form of short-term borrowing for dealers in government securities. In the case of a repo, a dealer sells government securities to investors, usually on an overnight basis, and buys them back the following day at a slightly higher price.