The weekly refinancing by the European Central Bank (ECB) is most similar to the Fed's use of:

Question

Quizplus · Accepted Answer

The ECB's weekly refinancing operation is similar to the Fed's use of repurchase agreements (repos). In both cases, the central bank provides short-term funding to banks in exchange for collateral. The primary credit facility and secondary credit facility are lending facilities offered by the Fed, but they are not directly comparable to the ECB's refinancing operation. The target federal funds rate is the rate at which banks lend to each other overnight, and while it is an important tool for the Fed, it is not directly related to its use of repos or the ECB's refinancing operation.

The Weekly Refinancing by the European Central Bank (ECB) Is