Which of the following is not an advantage of using a repurchase agreement?
A)The bank gains excess reserves which can be used to make new deposits.
B)The bank makes use of high-quality but low yielding assets without losing them permanently.
C)If the agreement is made with a bank which keeps a checkable deposit with another bank,it can reduce both the bank's deposits and reserve requirements.
D)The interest rate the bank has to pay is usually low.
E)All of the options are advantages of using a repurchase agreement.

Question

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The Answer of Which of the following is not an advantage of using a repurchase agreement?
A)The bank gains excess reserves which can be used to make new deposits.
B)The bank makes use of high-quality but low yielding assets without losing them permanently.
C)If the agreement is made with a bank which keeps a checkable deposit with another bank,it can reduce both the bank's deposits and reserve requirements.
D)The interest rate the bank has to pay is usually low.
E)All of the options are advantages of using a repurchase agreement.

Which of the Following Is Not an Advantage of Using