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In a repo agreement, Bank A, needing quick cash, provides its bonds to Bank B, which has excess cash, with an agreement to repurchase them later, typically the next day. Bank A receives the cash it requires, while Bank B profits by selling the bonds back to Bank A at a higher price. From Bank A's view, this transaction is known as a repo, while Bank B sees it as a reverse repo since it intends to resell the securities at a profit. Repo transactions are utilized by a variety of entities, including banks, mutual funds, hedge funds, and even central banks, as a means of managing cash and assets effectively.