Transaction of federal funds usually take place in form of

A. functional loans

B. annual loans

C. unsecured loans

D. secured loans

Answer: Option C

Solution(By Examveda Team)

Transaction of federal funds usually take place in form of unsecured loans. An unsecured loan is a loan that is issued and supported only by the borrower's creditworthiness, rather than by any type of collateral. Unsecured loans sometimes referred to as signature loans or personal loans are approved without the use of property or other assets as collateral.