Question

Who can initiate repurchase agreements with government & agency securities?

A) Commercial banks.
B) Retail investors.
C) Hedge funds.
D) Only authorized financial institutions.

Answer 1

Authorized financial institutions, such as commercial banks and hedge funds, can initiate repurchase agreements with government & agency securities.

Step-by-step explanation:

Authorized financial institutions can initiate repurchase agreements with government & agency securities.

These institutions include commercial banks, hedge funds, and other financial intermediaries.

Retail investors, on the other hand, typically do not have the authorization to engage in repurchase agreements with these types of securities.