Dear John: I would love for you to explain how repos work. Ty

Dear Ty: “Repos” stand for repurchase agreements. When the Federal Reserve wants to add liquidity to the monetary system, it repurchases government bonds and securities. Banks will have to buy the paper back within an agreed-upon period.

The more repos the Fed does, the more money banks will have to do business. The amount of the repos are announced whenever they are done. So savvy players on Wall Street are more interested in what the Fed is doing during these repo periods than what the Central Bank is saying about interest rates.

Send your questions to Dear John, The N.Y. Post, 1211 Ave. of the Americas, N.Y., N.Y., 10036, or

john.crudele@nypost.com.