question archive When a bank obtains funds through a what, the provider of the funds receives collateral?
Subject:EconomicsPrice:2.88 Bought3
When a bank obtains funds through a what, the provider of the funds receives collateral?
In case the bank obtains a fund through repurchase agreement, the provider must receive collateral. Collateral is an asset that the debt holder is required to provide in order to secure a debt. A repurchase agreement is an instrument that is used by various institutions in raising short term funds for the business.