Which of the Following Observations Concerning Repurchase Agreements Is NOT

question 109

Multiple Choice

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

• A)They can be viewed as collateralized federal funds transactions.
• B)The RP market is a highly liquid and flexible source of funds for DIs needing to increase their liabilities and to offset deposit withdrawals.
• C)Unlike fed funds,these transactions cannot be rolled over each day.
• D)It is difficult to transact an RP borrowing late in the day.

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