Question

Which one of the following statements is correct?Select one:a.When newly issued government bonds are taken up by banks, and the money is placed in the tax and loan accounts that the South African government holds with the commercial banks, this will lead to an increase in the money market deficit.b.Banks can use any money market instrument as underlying security for repo transactions with the SARB.c.Weekly repo auctions to provide liquidity to the banks at the current repo rate form part of the SARBs "lender-of-last-resort" function.d.When the SARB sells SARB debentures in the open market, this will lead to an increase in the money market deficit.

          Which one of the following statements is correct?Select one:a.When newly issued government bonds are taken up by banks, and the money is placed in the tax and loan accounts that the South African government holds with the commercial banks, this will lead to an increase in the money market deficit.b.Banks can use any money market instrument as underlying security for repo transactions with the SARB.c.Weekly repo auctions to provide liquidity to the banks at the current repo rate form part of the SARBs "lender-of-last-resort" function.d.When the SARB sells SARB debentures in the open market, this will lead to an increase in the money market deficit.

Added by Michael A.

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