In a Reverse Repo, from the FED point of view, the FED lends a Bond to an institution and get cash back, usually overnight.
As you can see here, On May 28th, 479B were lent to the FED at 0% and the number has been only increasing in the past months (data here). What it the point of lending at 0%? Couldn't bank just keep the cash, having the same result? What is the reason that for a bank is preferrable have a Bond overnight instead of cash? Thanks in advance
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