Question

In a repo transaction (or repurchase agreement), the one "buying" the collateral asset (with the promise of selling it back soon) is the:

Answer 1

The Borrower

Step-by-step explanation:

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.