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Q » What is repo and reverse repo?
06 Dec, 2025
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A » In finance, a repo (repurchase agreement) is a short-term borrowing mechanism where one party sells securities to another with an agreement to repurchase them at a predetermined price. Conversely, a reverse repo is the opposite transaction, where a party buys securities with the agreement to sell them back later. These tools are used to manage liquidity in the financial system, influencing interest rates and monetary policy.
06 Dec, 2025
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