Which of the Below Statements Is FALSE

Multiple Choice

Which of the below statements is FALSE?

A) The Federal Reserve imposes no limit on the amount of eligible bankers acceptances that may be issued by a bank.
B) An accepting bank that has decided to retain a bankers acceptance in its portfolio may be able to use it as collateral for a loan at the discount window of the Federal Reserve.
C) The Federal Reserve imposes a reserve requirement on funds raised via bankers acceptances that are ineligible.
D) Investing in bankers acceptances exposes the investor to credit risk.