The term repo simply means repurchase agreement between two parties. Assume that you are an investor who have an asset. You can then borrow cash using that asset as collateral.
Consider an example. Assume that you have a car and you need a loan based on your car. So, you go to a money lending agency, and apply for a loan. You obtain the cash you have needed and you need to repay your loan along with interest. In this case, you leave your car as collateral to the agency.
Consider another example. At one of the spectrum you have the hedge funds who have bonds and securities as collateral. At the end of the spectrum, you have banks with excess reserves ready to give out loans. So, the hedge funds obtain loans from such a bank selling those bonds as collateral. After the repo time has elapsed, the hedge funds buy back those bonds at a higher rate with the interest to be paid for the loan amount borrowed.
In September 2019, a lack of liquidity in the system increased the demand for the US dollar. The Fed responded by introducing the $60 billion purchase program to buy
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