What is the term for the contract between two parties where one agrees to sell a security and the other commits to buy it back later at a predetermined price?

Money Markets MCQs for PPSC, FPSC, NTS, and Pakistan government job tests. Select an option below, then read the explanation.

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Subject
Money Marketsfinance-mcqs › money-markets
Published
12 May 2023
Last updated
28 May 2026

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Explanation

A repurchase agreement is a financial contract where one party sells a security and agrees to repurchase it at a specified price at a future date. This distinguishes it from commercial note repurchases, bill repurchases, and reverse repurchase agreements.

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