(Consider This) in Reverse Repurchase Agreements (Reverse Repos)

question 111

Multiple Choice

(Consider This) In reverse repurchase agreements (reverse repos) ,

• A)banks borrow from nonbanks.
• B)the Fed buys bonds from banks with the promise to sell them back the next day.
• C)banks sell bonds to the Fed with the promise to buy them back the next day.
• D)the Fed sells bonds to the bank with the promise to buy them back the next day.

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Definitions:

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