When the Fed does repos and reverse repos (or repurchase agreements) with financial institutions, the collateral used in these transactions is
A)corporate stock.
B)municipal bonds.
C)government bonds.
D)certificates of deposits.

Question

Quizplus · Accepted Answer

The Federal Reserve typically uses government bonds, such as U.S. Treasury securities, as collateral in repurchase agreements (repos and reverse repos) with financial institutions.

When the Fed Does Repos and Reverse Repos (Or Repurchase