(Consider This) When the Fed Engages in a Repo Transaction

question 313

Multiple Choice

(Consider This) When the Fed engages in a repo transaction,

• A)it involves a bank repurchasing a collateralized loan it previously sold to the Fed.
• B)the Fed repossesses securities held by a failing bank.
• C)the Fed buys real property that a bank owns after repossessing it from a defaulted lender.
• D)it is part of a restrictive monetary policy action.