Which One of the Following Statements Is NOT Correct

question 11

Multiple Choice

Which one of the following statements is NOT correct?

• A)A repurchase agreement is the sale of a non-monetary asset together with an agreement to repurchase it a specified future date.
• B)The difference between the price at which a commercial bank sells an asset to the central bank and the price at which it agrees to buy it back can be expressed as an annualized percentage of the selling price, and this is called the refinancing rate.
• C)In SA the refinancing rate is known as the repo rate.
• D)If the central bank raises its refinancing rate then the commercial banks will try to increase their lending.

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Definitions:

ROI

Return on Investment, a performance measure used to evaluate the efficiency of an investment or to compare the efficiencies of several different investments.

Investment Opportunity

A financial investment or venture that has the potential to yield returns.

Manufacturing Cycle Efficiency (MCE)

A performance metric that measures the proportion of production time that is actually spent on value-added activities.

Combined Residual Income

This term might refer to the total residual income from various sources or projects, but without a standard definition, its specific meaning can vary.