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42. Cheetum Securities Broker Dealer needs to meet the overnight liquidity standards required by the Federal Reserve. Cheetum does not have the requisite cash on
42. Cheetum Securities Broker Dealer needs to meet the overnight liquidity standards required by the Federal Reserve. Cheetum does not have the requisite cash on hand, but has a significant US Treasury bond position. The firm decides to sell the bond portfolio to Rip-Off Bank for a price of 98 and buy the bond portfolio back tomorrow at a price of 100. What type of transaction is described?
A. Sale Leaseback
B. Repo
C. IPO
D. Broker's Call Loan
E. Fed Funds Loan
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