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What Is a Reverse Repurchase Agreement? How Does the Fed

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What is a reverse repurchase agreement? How does the Fed use reverse repurchase agreements to target the federal funds rate?


Definitions:

Equilibrium Potential

This term refers to the electrical potential difference that precisely balances an ionic concentration gradient across a membrane, resulting in no net ion flow.

Hyperpolarization

An increase in a cell's membrane potential, making it more negative inside compared to the outside and further from the threshold that causes action potentials.

Absolute Refractory Period

A period immediately following the stimulation during which a nerve or muscle is unresponsive to further stimulation.

Second Messenger System

A method of cellular signaling where the signal from a first messenger is transferred to a secondary molecule inside the cell to elicit a physiological change.

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