REPURCHASE AGREEMENT Definition

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REPURCHASE AGREEMENT (REPO) is a contract in which an investor or securities dealer sells a United States security to a bank or other corporation and agrees to repurchase the security later at a specified time and price, including interest. The investment period ranges from one day to several months, and the purchaser earns interest competitive with money market rates.

Learn new Accounting Terms

ECONOMICALLY FEASIBLE means that the benefit of tracing the cost (greater accuracy) outweighs the cost of doing so.

SIGHT DRAFT is a draft which is payable on demand.

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