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 from 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.

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 from 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.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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