Which of the Following Observations Concerning Repurchase Agreements Is Not

question 14

Multiple Choice

Which of the following observations concerning repurchase agreements is not true?

• A)They can be viewed as collateralised short-term loans where a financial security is swapped for cash.
• B)The repurchase market is a highly liquid and flexible source of funds for DIs needing to access liquidity to offset deposit withdrawals.
• C)Repos under the intra-day facility system are discouraged and attract an interest rate charge of 25 basis points above the target cash rate.
• D)It is difficult to transact a repurchase agreement borrowing late in the day.

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Definitions:

Emotional Signals

Expressions or manifestations of one's feelings that communicate emotional states to others, often non-verbally.

Expectancy Theory

A motivational theory that suggests an individual's motivation is related to their expectation of achieving desirable outcomes as a result of their efforts and the value they place on those outcomes.

Employee Motivation

The intensity of zeal, loyalty, and originality that workers in a company demonstrate in their positions.

Four-Drive Theory

A motivational theory that identifies four basic drives that affect human behavior: the drive to acquire, bond, comprehend, and defend.