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Bank A needs cash quickly and owns assets, while Bank B has excess cash. In a repo agreement, Bank A gives bonds to Bank B and agrees to buy them back at a higher price later. This allows Bank A to get cash quickly and Bank B to make a profit. 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 banks, mutual funds, hedge funds, and even central banks. It provides a way for entities to manage their cash and assets effectively.