question archive When a bank obtains funds through a what, the provider of the funds receives collateral?

When a bank obtains funds through a what, the provider of the funds receives collateral?

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When a bank obtains funds through a what, the provider of the funds receives collateral?

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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.