n NISM Certifications
NSM General NISM
Medium

Repo transaction means ________.

Practice question from NISM Series IV - Mock Test 2 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Borrowing security and lending money

  2. Borrowing money and lending security

    Correct answer

  3. C

    Both 1 and 2

  4. D

    None of the above

Why this is the answer

In a repo, one borrows money against security; reverse repo involves lending.

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