Which of the below statements is FALSE?
A) Government broker-dealers are not required to disclose the bid-ask spread on the Treasury securities that they buy from or sell to customers.
B) In the repo market, the term of the loan and the interest rate that the dealer agrees to pay (called the repo rate) are specified.
C) The advantage to the dealer of using the repo market for borrowing on a short-term basis is that the rate is greater than the cost of bank financing.
D) There is no one repo rate; rates vary from transaction to transaction depending on factors such as the term of the repo and the availability of collateral.
Correct Answer:
Verified
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