Question

when the central bank sells the government security through a agreement which has a specification about the date and prices at which it will . This type of agreement is called a(i) __________. The rate at which the money withdrawn in this manner is called the (ii) ___________​

Answer 1

That agreement called Share

and the rate in which money withdrawn called BANK RATE

Answer 2

When the Central Bank sells the Government Security through a agreement which has a specification about the date and prices at which it will repurchase. This type of agreement is called repurchase agreement. The rate at which the money withdrawn in this manner is called the bank date. The following mentioned are some facts regarding it:

- Repurchase agreement is also known as sale, or, repo on RP.

- It is mainly for government securities and is a form of short term borrowing.

- Agreement between two party on following date at a slightly higher price buys them back shortly afterwards.

The wedding reception the underlying security