Answer: 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.
