Which of the Following Is Not an Advantage of Using

question 115

Multiple Choice

Which of the following is not an advantage of using a repurchase agreement?

• A)The bank gains excess reserves which can be used to make new deposits.
• B)The bank makes use of high-quality but low yielding assets without losing them permanently.
• C)If the agreement is made with a bank which keeps a checkable deposit with another bank,it can reduce both the bank's deposits and reserve requirements.
• D)The interest rate the bank has to pay is usually low.
• E)All of the options are advantages of using a repurchase agreement.

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Definitions:

Pitch Increase

A rise in the perceived frequency of sound, leading to the auditory sensation of a higher tone.

Visible Light

The part of the electromagnetic spectrum that stimulates the eye and produces visual sensations.

Cosmic Rays

High-energy particles, originating outside the solar system, that travel through space and strike the Earth's atmosphere.

Ultraviolet Rays

Invisible radiation with wavelengths shorter than visible light but longer than X-rays, capable of producing chemical reactions and causing harm to skin and eyes.