What is Repo? O These instruments are typically overnight loans between banks of their deposits at the Federal Reserve. O These money market instruments are created in the course of carrying out international trade. This is a bank draft (a promise of payment similar to a check) issued by a firm, payable at some future date, and guaranteed for a fee by a bank. O These instruments are effectively short-term loans (usually with a maturity of less than two weeks) for which Treasury bills serve as collateral, which the lender receives if the borrower does not pay back the loan. O A short-term debt instrument issued by large banks and well-known corporations