Which of the following is CORRECT?   the Fed Funds market is a Federal Reserve-operated market the interest rate on Fed Funds is a relatively poor indicator of liquidity in the banking system the Fed Funds market is a commercial inter-bank market borrowing from the Fed Funds market is the only way banks can make up a reserve deficiency

Exploring Economics
8th Edition
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:Robert L. Sexton
Chapter25: Money, Banking, And The Federal Reserve System
Section: Chapter Questions
Problem 16P
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Which of the following is CORRECT?

 

the Fed Funds market is a Federal Reserve-operated market

the interest rate on Fed Funds is a relatively poor indicator of liquidity in the banking system

the Fed Funds market is a commercial inter-bank market

borrowing from the Fed Funds market is the only way banks can make up a reserve deficiency

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