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CTP · Question #872

(Topic 9) A company invests in a bond and then later agrees to sell the bond to a bank with the understanding that the company will buy the bond back at a later time. This is known as:

The correct answer is A. reverse repurchase. See the full explanation below for the reasoning.

Question

  • (Topic 9)

A company invests in a bond and then later agrees to sell the bond to a bank with the understanding that the company will buy the bond back at a later time. This is known as:

Options

  • Areverse repurchase.
  • Bsecuritization.
  • Cfactoring.
  • Dsyndication.

How the community answered

(20 responses)
  • A
    80% (16)
  • B
    5% (1)
  • C
    5% (1)
  • D
    10% (2)

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