Glossary

Federal Funds Purchased/Securities Sold Under Repurchase Agreement represents funds acquired from a financial institution for a limited period of time to cover reserve requirements. Although the results are the same, the providers of the varying resources are different. Federal Funds Purchased are short-term loans to other depository financial institutions without any collateral, provided by Federal Reserve banks, usually at the Federal Funds rate. These may be considered wholesale loans to other banks. Securities Sold Under Repurchase Agreement are securities purchased on a temporary basis from other financial institutions with a pre-set selling price within a short period of time.