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:

Equality

Equality refers to the state of being equal, especially in status, rights, and opportunities.

Total Surplus

Total surplus refers to the sum of consumer surplus and producer surplus in a market, representing the overall benefit that market participants gain from engaging in trade.

High-cost Producer

A producer or company which has higher costs of production compared to competitors, often due to inefficient processes or higher input costs.

Low-cost Producer

A manufacturer or service provider with a competitive advantage allowing them to offer goods or services at a lower price than competitors, often due to operational efficiencies.