The overnight reverse repurchase agreement is

A$.$

the Fed policy that attempts to increase aggregate demand by buying$$ long$-$term securities$,$ such as$10-$year Treasury notes.

B$.$

the current system under which the Fed uses the interest rate on$$ banks' reserve balances and the interest rate on overnight loans with financial firms to establish a floor under the federal funds rate.

C$.$

a financial transaction in which the Fed borrows funds overnight from a financial firm.

D$.$

the statement by the Federal Open Market Committee about how it will conduct monetary policy in the future.