The SARB enters into a repurchase agreement with Bank B. Bank B sells government bonds to the SARB in the first leg, and buys it back i the second leg. Which of the following is correct:
A- In the first leg rand flows to the SARB
B- In the first leg the liquidity deficit of the banking sector increases
C- in the second leg rand flows to the SARB
D- In the second leg the liquidity deficit of the banking sector increases