The ECB now frequently uses _____ to inject reserves into the banking systems of countries that use the Euro. ?

Question

The ECB now frequently uses _____ to inject reserves into the banking systems of countries that use the Euro. ?

Quizplus · Accepted Answer

The ECB frequently uses repurchase agreements, also known as "repos," to inject reserves into the banking systems of countries that use the Euro. In a repo transaction, the ECB sells securities to banks with an agreement to buy them back at a later date, usually within a few days or weeks. This provides banks with the cash they need to meet their reserve requirements, while also allowing the ECB to control the money supply and interest rates.

The ECB Now Frequently Uses _____ to Inject Reserves into the Banking