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21-10-2019
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Which of these money market instruments are short-term funds transferred between financial institutions, usually for no more than one day? A) federal funds C) banker acceptances B) treasury bills D) commercial paper

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majocgonzalez majocgonzalez

24-10-2019

Answer:

A) Federal funds

Explanation:

Federal funds are loans between banks and other finantial entities so they can maintain their reserve requirements at the Federal Reserves and these loans are made for one day. This happens when an entitity has an excess in reserve requirements and it lends money to an institution with deficiencies.

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