Which one of the following is not true ?

• A. The difference between the price at which commercial bank sells an asset to the central bank and the price it agrees to buy it back can be expressed a
• B. Commercial banks may borrow from and lend to each other and the interest rate at which they do this is called the refinancing rate
• C. In the UK the refinancing rate is known as the repo rate and in the USA it is referred to as the discount rate.
• D. If the central bank has bought some assets from a commercial bank with an agreement that the commercial bank will buy them back at a later date, then
• E. If the central bank raises its refinancing rate then the commercial banks will try to reduce their lending and so reduce the need to borrow from the c