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AAFM Exam GLO_CWM_LVL_1 Topic 8 Question 58 Discussion

Actual exam question for AAFM's GLO_CWM_LVL_1 exam
Question #: 58
Topic #: 8
[All GLO_CWM_LVL_1 Questions]

Which of the following is true of Reverse Repo rate?

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Suggested Answer: B

by Felix at Mar 02, 2023, 11:08 PM

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Jolanda
2 months ago
Aha! The reverse repo rate is the benchmark for long-term rates. That means it's the foundation upon which other interest rates are built. It's like the financial version of the chicken and the egg - which came first, the repo or the reverse repo?
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Jerry
21 days ago
That's right, it's like the backbone of the financial system.
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Marti
23 days ago
It's interesting how it plays a crucial role in determining other interest rates.
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Ettie
28 days ago
Yes, the reverse repo rate is indeed the benchmark for long-term rates.
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Socorro
2 months ago
Okay, let's see... The reverse repo rate is lower than the repo rate, right? So it must be the rate the central bank pays to borrow money from the banks. That's a bit like a bank paying you to borrow your money - I'm starting to get dizzy just thinking about it!
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Lai
1 months ago
It's like a role reversal, with the central bank paying interest to the banks instead of the other way around.
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Ronny
1 months ago
That's right! It's the rate at which the central bank borrows money from commercial banks.
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Sue
2 months ago
Yes, you're correct! The reverse repo rate is indeed lower than the repo rate.
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Sharen
2 months ago
Hmm, let me think... Is it the rate banks pay to borrow from the central bank? Or is it the rate they get when they lend to the central bank? I feel like I'm about to get caught in a financial loop.
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Mary
1 hours ago
B) Lower than repo rate
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Felicitas
5 days ago
A) Determined by free market forces
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Patria
20 days ago
D) Part of funding cost for commercial banks
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Lizbeth
24 days ago
C) benchmark for long term rates
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Royal
1 months ago
B) Lower than repo rate
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Merri
1 months ago
A) Determined by free market forces
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Maryln
2 months ago
Reverse Repo rate, huh? I bet it's just the repo rate in reverse - like a secret handshake between the banks and the central bank. The real question is, can I use it to reverse my financial troubles?
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Maryann
29 days ago
Yeah, it's like a way for banks to earn interest on their surplus cash.
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Sherill
1 months ago
I think it's more like a tool for banks to park their excess funds with the central bank.
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Dortha
1 months ago
D) Part of funding cost for commercial banks
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Larae
1 months ago
C) benchmark for long term rates
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Remona
1 months ago
B) Lower than repo rate
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Stevie
2 months ago
A) Determined by free market forces
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Quentin
2 months ago
Hmm, that makes sense too. I guess it could be D then.
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Jeffrey
2 months ago
I disagree, I believe the answer is D) Part of funding cost for commercial banks.
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Quentin
2 months ago
I think the answer is B) Lower than repo rate.
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