24. What causes the positions that dealers hold in securities to change over time?
Problems and Issues1.Determine which of the following statements are TRUE and which are FALSE. For those that are FALSE. Identify what makes them false and correct it.a. Government securities dealers rely principally on demand loans from banks for financing their purchase of RPs.
b. Government securities dealers use collateral for the backing of RPs that they do not usually obtain until after they purchase the RP.
c. Government securities brokers often trade government securities with dealers but do not incur interest rate risk in the process.
d. Government securities brokers usually take short positions in government securities when interest rates are expected to be rising, and long positions when interest rates are expected to be falling.