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If a financial institution has surplus cash, it may ________ securities with the understanding that the seller would repurchase them later. In this case the

If a financial institution has surplus cash, it may ________ securities with the understanding that the seller would repurchase them later. In this case the repurchase agreement is ______ for the firm that bought the securities. If a financial institution is low on cash, it may _______ securities for cash with the understanding that it would repurchase the securities later. Here the repo is ________.

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An asset.

a liability

buy

sell

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