question archive Which statement about repurchase agreements is false? Repurchase agreements are short-term loans
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Which statement about repurchase agreements is false?
Repurchase agreements are short-term loans.
Repurchase agreements are only made with risk-free assets such as T- bills.
Repurchase agreements can be arranged with the Fed acting as the reverse repo counterparty.
Most repurchase agreements are overnight transactions.
Answer:
option b) Repurchase agreements are only made with risk free assets such as t-bills
This Statement is false
All other statements are correct