Which of the below statements is FALSE?
A) The Federal Reserve imposes no limit on the amount of eligible bankers acceptances that may be issued by a bank.
B) An accepting bank that has decided to retain a bankers acceptance in its portfolio may be able to use it as collateral for a loan at the discount window of the Federal Reserve.
C) The Federal Reserve imposes a reserve requirement on funds raised via bankers acceptances that are ineligible.
D) Investing in bankers acceptances exposes the investor to credit risk.
Correct Answer:
Verified
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