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Bank A, in need of quick cash, can engage in a repurchase agreement with Bank B. In this agreement, Bank A sells bonds to Bank B with the agreement to buy them back at a higher price in the near future, usually the next day. This transaction allows Bank A to acquire the needed cash while Bank B earns a profit. This type of agreement is known as a repo from Bank A's perspective and a reverse repo from Bank B's perspective. Repurchase agreements are commonly used by banks, mutual funds, hedge funds, and even central banks as a means of managing cash flow and making short-term investments.