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24. To meet its liquidity requirement, a commercial bank plans to borrow 7 million from the central bank. The bank strikes a repo agreement with
24. To meet its liquidity requirement, a commercial bank plans to borrow 7 million from the central bank. The bank strikes a repo agreement with the central bank for 10 days and at an interest rate of 0.6% per annum. According to the repo agreement, the central bank purchases a portfolio of 7 million in treasury securities from the commercial bank. What would be the central bank's sell back value of these assets under this repo agreement? (10 Marks)
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