Which of the following statements is NOT correct?

	A.	The RBA manipulates the position of the supply of reserves to hit the cash rate target.
	B.	The RBA aims at offsetting (partially or fully) the effect of the autonomous factors on the ESF stock when deciding the injections at the OMO.
	C.	The cash rate is always on the cash rate target because of banks' expectations about the future level of cash rate.
	D.	The equilibrium cash rate and the cash rate target are two distinct concepts; they may or may not coincide.
	E.	The RBA cannot impose the cash rate to banks but can decide the cash rate target.

Which of the following statements is correct?

A commercial bank repurchases its security from the Central Bank at a higher price than it sold it to the Central Bank. The reverse repo in net (i.e. combining the two stages of the reverse repo) ___________________ the commercial bank's reserves and _____________ the Central Bank's equity.

	A.	increases; increases
	B.	decreases; remains unchanged
	C.	decreases; decreases
	D.	increases; decreases
	E.	decreases; increases