Which of the Following Is NOT Correct? End-Of-Day Repurchase Facility

question 9

Multiple Choice

Which of the following is NOT correct? End-of-day Repurchase facility involves:

• A)the Reserve Bank of Australia (RBA)providing funds on ESA.
• B)making the ESA holders who benefits from the operation pay the cash rate target plus 25 basis points.
• C)an ESA holder closing out a position at the end of the day.
• D)the Reserve Bank of Australia (RBA)buying securities held by institutions on the basis that it will resell them back to the institutions the same day.

---

Definitions:

Factor Market

A marketplace where services of the factors of production (labor, land, capital) are bought and sold.

Product Market

The marketplace where final goods or services are offered to consumers, businesses, and the government.

Positive

In economics, referring to factual statements or analyses about how the world is, as opposed to normative statements which are about how the world ought to be.

National Defense

The government activities and measures taken to protect a country and its citizens from external and internal threats, including maintaining armed forces and developing defense strategies.