Which of the following is NOT correct? End-of-day Repurchase facility involves:
A)the Reserve Bank of Australia (RBA)providing funds on ESA.
B)making the ESA holders who benefits from the operation pay the cash rate target plus 25 basis points.
C)an ESA holder closing out a position at the end of the day.
D)the Reserve Bank of Australia (RBA)buying securities held by institutions on the basis that it will resell them back to the institutions the same day.

Question

Quizplus · Accepted Answer

The end-of-day repurchase facility involves the RBA providing funds to ESA holders, but the securities are not resold the same day; they are typically repurchased the next business day.

Which of the Following Is NOT Correct? End-Of-Day Repurchase Facility