Among the following which statement given is not true?
a) If the central bank raises its refinancing rate, then the commercial banks will try to
reduce their lending and so reduce the need to borrow from the central bank.
b) Commercial banks may borrow f'am and lend to each other and the interest rate at
which they do this is called the refinancing rate.
c) The difference between the price at which a commercial bank sells an asset to the
central bank and the price it agrees to buy it back can be expressed as an annualized
percentage of the selling price, and this is called the refinancing rate,
d) If the central bank has bought some assets from a commercial bank with an
agreement that the commercial bank will buy them back at a later date, then this
would be called a repo.
Answers
Answered by
6
Answer:
option d
Explanation:
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Answered by
0
Answer:
Option B is the right Answer
Explanation:
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