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In general, the REPO rate is higher than FED FUND rate. True or False True False uces
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Answer #1

FALSE

The fed funds rate is the rate for overnight lending amongst financial institutions. Repo rate is rate at which commercial banks borrow money from the fed. The fed funds rate is always higher than the repo rate. This is because there is no collateral on federal funds borrowing which makes it unsecured and more risky.

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