Question

In a reverse repurchase agreement, who is the buyer of the underlying securities?

1) The bank dealer
2) The Federal Reserve
3) Cannot be determined
4) Not mentioned in the given information

Answer 1

In a reverse repurchase agreement, the buyer of the underlying securities is not determined.

Step-by-step explanation:

In a reverse repurchase agreement, the buyer of the underlying securities is not mentioned in the given information. A reverse repurchase agreement, also known as a reverse repo, is a finannot mentioned in the given information. cial transaction in which a party sells securities to another party with an agreement to repurchase them at a later date. The buyer could be a bank dealer, the Federal Reserve, or another party, depending on the specific transaction.