Some great videos to watch on it are

Repurchase Agreements (Repo) & Reverse Repurchase Agreements (Reverse Repo) Explained in One Minute

https://www.youtube.com/watch?v=H_wwzyAGPZw

A Repo agreement is basically a bank giving another bank assets and bonds for a time in order to receive fast cash ( loaning the loans and assets...). You get more cash in short term but less in long term.

A Reverse Repo is paying cash to have those loans and assets for a period of time and sells them back later. You lose cash short term but get more long term.

The Federal Reserve which makes money out of thin air has over a $ Trillion in reverse repo agreements where they basically used their cash to give banks money in order to acquire their bonds and assets to collect more money (that is initially created by them) over time.

Its supposed to be a way to make sure banks don't go under when fast market movements causes the bank to have low liquidity or be at risk of going under.

Some great videos to watch on it are

Repurchase Agreements (Repo) & Reverse Repurchase Agreements (Reverse Repo) Explained in One Minute

https://www.youtube.com/watch?v=H_wwzyAGPZw

A Repo agreement is basically a bank giving another bank assets and bonds for a time in order to receive fast cash ( loaning the loans and assets...). You get more cash in short term but less in long term.

A Reverse Repo is paying cash to have those loans and assets for a period of time and sells them back later. You lose cash short term but get more long term.

The Federal Reserve which makes money out of thin air has over a $ Trillion in reverse repo agreements where they basically used their cash to give banks money in order to acquire their bonds and assets to collect more money (that is initially created by them) over time.