When transacted by the Federal Open Market Committee of the Federal Reserve in open market operations, repurchase agreements add reserves to the banking system and then after a specified period of time withdraw them; reverse repos initially drain reserves and later add them back. This tool can also be used to stabilize interest rates, and

Robinhood. “What are the near and far legs in a repurchase agreement?” Accessed Aug. 14, 2020. 2) Cash to be paid in the repurchase of the security Participants in the repurchase agreement market The major difference between a term and an open repo lies in the amount of time between the sale and the repurchase