Question

firm that has large securities holdings that wishes to raise money for a short length of time may be able to find the cheapest financing from which of the following? Reverse repurchase agreement Banker's acceptance Commercial paper Repurchase agreement

Answer 1

Answer: Reverse repurchase agreement

Explanation: A reverse repurchase agreement is a money market instrument agreement for the purchase of securities now that will be sold on at a future date for a higher price.

This agreement is a source of short term capital and are mainly financial instruments.