Editing Repurchase agreement (section)

===Reverse repo facility===
Whereas a repo facility is a security-buying party acting as a [[lender]] of cash to security sellers who effectively [[borrower|borrow]] cash at interest (the ''repo rate''), with the security they sell serving as [[Collateral (finance)|collateral]], a reverse repo facility is a security-selling party allowing buyers with cash to effectively lend it to the facility at interest with the security they purchase serving as collateral. An example is a bank with cash deposits who loans it to a reverse repo facility to earn interest on it and contribute to their own collateral requirements (as deposit banks) with the collateral they obtain in the transaction.<ref name="RRP">{{cite web | last = Chen | first = James | title = Reverse Repurchase Agreement | work = STOCK TRADING STOCK TRADING STRATEGY & EDUCATION | publisher = [[Investopedia]] | date = 28 December 2020 | url = https://www.investopedia.com/terms/r/reverserepurchaseagreement.asp  | accessdate = 16 March 2021 }}</ref>