Investopedia

Purchase and Resale Agreements - PRAs

Dictionary Says

Definition of 'Purchase and Resale Agreements - PRAs'

An arrangement between the Bank of Canada and dealers whereby the Bank buys treasuries from a dealer, and the dealer agrees to repurchase the treasuries the next day.
Investopedia Says

Investopedia explains 'Purchase and Resale Agreements - PRAs'

In a PRA, the Bank of Canada is essentially lending money to the dealer at the midpoint of the overnight operating band rate in order to increase the dealer's liquidity.

Articles Of Interest

  1. How The U.S. Government Formulates Monetary Policy

    Learn about the tools the Fed uses to influence interest rates and general economic conditions.
  2. The Federal Reserve

    Few organizations can move the market like the Federal Reserve. As an investor, it's important to understand exactly what the Fed does and how it influences the economy.
  3. Is It Time to Invest in Australia?

    Australia a country rich in natural resources and one increasingly gaining attention from investors. Is it time to put some of your international allocation to work in Australia?
  4. The Impact Of Mark Carney Leaving Bank Of Canada To Take Over Bank Of England

    Canada's loss is the U.K.'s gain, as Mark Carney goes overseas to take over the Bank of England.
  5. How New Offshore Bank Rules Will Affect Americans

    FATCA is being implemented in 2013. Here is how it will affect the personal banking and taxes of Americans who hold offshore bank accounts.
  6. 5 Products Canadians Pay Way More For

    Here are certain categories of goods and services that are usually cheaper in the U.S. than in Canada.
  7. Canadian Grants And Tax Credits Fund Education

    RESPs and other grants help parents save for post-secondary education for their children.
  8. U.S. Or Canada: Which Country Is Best To Call Home?

    There are unique benefits to living both above and below the 49th parallel. Find out which of these great nations best suits your value system.
  9. What About Canada's Housing Bubble?

    Canadians may want to take a closer look at their housing market, lest it experience the same problems as the United States'.
  10. How To File A Canadian Tax Return

    The process for filing a Canadian tax return is easy and streamlined. Here is the information you need to know before filing.
comments powered by Disqus
Marketplace
Hot Definitions
  1. Winner's Curse

    Because of incomplete information, emotions or any other number of factors regarding the item being auctioned, bidders can have a difficult time determining the item's intrinsic value. As a result, the largest overestimation of an item's value ends up winning the auction.
  2. Glocalization

    A combination of the words "globalization" and "localization" used to describe a product or service that is developed and distributed globally, but is also fashioned to accommodate the user or consumer in a local market.
  3. Disaster Loss

    A special type of tax-deductible loss, similar to a casualty loss, where a loss has been incurred by taxpayers who reside in an area that has been designated as a federal disaster area by the President.
  4. Fool In The Shower

    The notion that changes or policies designed to alter the course of the economy should be done slowly, rather than all at once.
  5. Pattern Day Trader

    An SEC designation for traders who trade the same security four or more times per day (buys and sells) over a five-day period, and for whom same-day trades make up at least 6% of their activity for that period.
  6. Cost-Push Inflation

    A phenomenon in which the general price levels rise (inflation) due to increases in the cost of wages and raw materials.
Trading Center