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School

Pennsylvania State University *

*We aren’t endorsed by this school

Course

351

Subject

Economics

Date

Nov 24, 2024

Type

png

Pages

1

Uploaded by PresidentTankKouprey25

Report
Tools of Monetary Policy (15.2-15.3) (2) Overnight Reverse Purchase Agreement Facility (ON RRP) * repurchase agreement (or repo) is a short-term loan backed by collateral. * Fed buys a security from a financial firm, which promises to buy it back from the Fed the following day. * With a reverse repo (a matched sale-purchase), the Fed does the opposite ® Fed can change the interest rates on ON RRPs to impact the target for the federal funds rate. o
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