The federal funds market:
is the borrowing by American banks from foreign lenders.
is the term used for bank borrowing from the Federal Reserve System.
is the lending to banks by the U.S. treasury when banks face liquidity emergencies.
is the inter-bank market where excess reserves from one bank can be loaned to another bank
The federal funds market:
Answer:
D :
Is the inter-bank market where excess reserves from one bank can be loaned to another bank
Explanation
This market enable to the depository institutions for their reserve balances which are in excess of the reserve requirements can lend reserves to the institutions with the reserve deficiencies. So we can say that, it Is the inter-bank market where excess reserves from one bank can be loaned to another bank
