ECONOMICS
FINANCIAL MARKETS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Repurchase agreements
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Negotiable certificates of deposit
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Federal funds
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U.S. government agency securities
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Detailed explanation-1: -Repurchase agreement are short-term loans where treasury bills serve as collateral. This means that if the borrower does not pay the short-term loan then the treasury bills will.
Detailed explanation-2: -1.3 Treasury bills or T-bills, which are money market instruments, are short term debt instruments issued by the Government of India and are presently issued in three tenors, namely, 91 day, 182 day and 364 day.
Detailed explanation-3: -A short term loan is a type of loan that is obtained to support a temporary personal or business capital need. As it is a type of credit, it involves repaying the principle amount with interest by a given due date, which is usually within a year from getting the loan.
Detailed explanation-4: -No collateral needed Short-Term Loans are generally unsecured. This means that you do not need to provide any collateral as security in exchange for the loan amount. This is very beneficial for customers who do not have any collateral to pledge as security.