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Bank A engages in a repo agreement with Bank B, where it gives bonds to Bank B in exchange for cash, with the agreement to repurchase the bonds at a higher price later. This allows Bank A to quickly get the cash it needs, while Bank B earns a profit from the transaction. This type of transaction, known as a repo from Bank A's perspective and a reverse repo from Bank B's perspective, is common among various financial entities like banks, mutual funds, and hedge funds.
