In borrowing and lending of federal funds federal funds rate is...

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In borrowing and lending of federal funds, federal funds rate is result of function between

A. assets and liability

B. cost and marketing

C. supply and demand

D. income and expense

Answer: Option C

Solution (By Examveda Team)

In borrowing and lending of federal funds, federal funds rate is result of function between supply and demand. The federal funds rate refers to the interest rate that banks charge other banks for lending them money from their reserve balances on an overnight basis.

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