(Consider This) in Reverse Repurchase Agreements (Reverse Repos)

Multiple Choice

(Consider This) In reverse repurchase agreements (reverse repos) ,

A) banks borrow from nonbanks.
B) the Fed buys bonds from banks with the promise to sell them back the next day.
C) banks sell bonds to the Fed with the promise to buy them back the next day.
D) the Fed sells bonds to the bank with the promise to buy them back the next day.