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.

---

Definitions:

Someone Who Is Obese

An individual who has an excess amount of body fat, often defined as having a Body Mass Index (BMI) of 30 or higher.

Set-point Theory

The concept that the body regulates its weight and energy levels around a biologically predetermined "set point," leading to stable body weight over time unless disrupted.

Set Point

A theory suggesting that the body regulates its weight and energy balance around a biologically predetermined point.

Weight Change

Refers to the fluctuation of a person's body weight over time, which can result from factors such as diet, exercise, and health conditions.