Author Question: The federal funds market is the market where: a. the federal government borrows money from banks to ... (Read 76 times)

cdr_15 · **on:** Jun 30, 2018

The federal funds market is the market where:
a. the federal government borrows money from banks to finance the national debt.
b. the federal government lends money to commercial banks.
c. banks borrow money from other banks for short periods of time.
d. banks borrow money from the Fed for short periods of time.
e. banks borrow money from the Treasury for long periods of time.

Question 2

The market where banks borrow from other banks for short periods of time is the:
a. discount market.
b. federal funds market.
c. inter-bank loan market.
d. national bank market.
e. liquidity market.