Repurchase agreements, Repo and reverse repo.

A nice video from Khan academy. This one is starting with what we call in French, “les gages” in order to explain the act of buying securities in exchange of a loan. Buying and not borrowing.

This video about the gage is eventually dealing with relations between a central bank and a bank through Repo and reverse repo.

Repurchase agreements (repo transactions): Mechanics of repurchase agreements (repo transactions/loans)