Question

19) Federal (fed) funds A) are short-term funds transferred between financial institutions, usually for a period of one day. B) are not federal government funds. C) provide banks with an immediate infusion of reserves. D) are all of the above. E) are only A and B of the above.

Answer 1

Answer: D

The correct answer is D) all of the above.
Federal (fed) funds are short-term funds transferred between financial institutions, typically for a duration of one day. These funds are not federal government funds themselves, but they are used by financial institutions to provide banks with an immediate infusion of reserves.