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IIA-CFSA · Question #201

IIA-CFSA Question #201: Real Exam Question with Answer & Explanation

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Question

Securities lending refers to the practice of temporarily transferring securities to a borrower with the intent that the lender will buy them back at a future date. The borrower is required to return the securities to the lender, either on demand or at a specified time. A major reason for securities lending is:

Options

  • ATo circulate the issued capital
  • BTo facilitate short sale
  • CTo facilitate over the counter trade
  • DTo fasten secondary market trading

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