A reverse repurchase agreement is O a transaction in which the New York Fed under the authorization and direction of the Federal Open Market Committee sells a security to an eligible counterparty with an agreement to repurchase that same security at a specified price at a specific time in the future. O is the rate of interest that, effective July 29, 2021, is paid by the Federal Reserve on balances maintained by or on behalf of eligible institutions in master accounts at Federal Reserve Banks. The interest rate is set by the Board of Governors. O The lowest rate that banks are likely willing to accept for lending out their funds. O The simultaneous purchase and sale of funds (or goods) in order to profit from a difference in price. K