(Consider This) When the Fed Engages in a Repo Transaction

Multiple Choice

(Consider This) When the Fed engages in a repo transaction,

A) it involves a bank repurchasing a collateralized loan it previously sold to the Fed.
B) the Fed repossesses securities held by a failing bank.
C) the Fed buys real property that a bank owns after repossessing it from a defaulted lender.
D) it is part of a restrictive monetary policy action.