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Question
When the Fed engages in an overnight reverse repoa. a bank agrees to hold a certain amount of clearing balances at the Fed.
b. the fed sells securities and agrees to buy them back in one day.
c. a primary government securities dealer agrees to sell a security to the Fed one day and buy it back the next day.
d. The Fed repossesses property that a bank owns as punishment for the bank's failure to pay off a discount loan.
Answer
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