The Trading Desk Has Determined That a Positive Reserve Need

question 36

Multiple Choice

The Trading Desk has determined that a positive reserve need exists but expects the need to be temporary. What can the manager do to temporarily increase the amount of reserves in the system?

• A)engage in open market outright purchases
• B)engage in open market outright sales
• C)engage in a system repurchase agreement
• D)engage in a reverse repurchase agreement

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