Federal funds are loans borrowed and lent on
A. single payment basis
B. monthly payment basis
C. semi-annual payment basis
D. annual payment basis
Answer: Option A
Solution (By Examveda Team)
Federal funds are loans borrowed and lent on single payment basis. Federal funds, often referred to as fed funds, are excess reserves that commercial banks and other financial institutions deposit at regional Federal Reserve banks; these funds can be lent, then, to other market participants with insufficient cash on hand to meet their lending and reserve needs.This Question Belongs to Management >> International Finance And Treasury
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