Tiger Telecommunications Company needs to borrow $1 million overnight and is willing to secure the loan with a portfolio of securities that the borrower will repurchase tomorrow at a higher price. This is an example of a.

Repurchase agreement

Explanation:

A repurchase agreement, also called a repo, is a short-term borrowing usually in government securities. It is an agreement whereby the dealer sells securities to investors and purchases them back quickly usually the next day at a higher price.

The question above is an example of a repurchase agreement. Tigers Telecommunications needed one million dollars and was willing to tender its securities to get the loan and buy the securities at a higher price.