The borrowing and loaning of reserves among depository institutions, typically overnight, occurs in the
A)money market.
B)fed funds market.
C)capital market.
D)Eurodollar market.

Question

Quizplus · Accepted Answer

The fed funds market refers to the borrowing and lending of reserves among depository institutions, typically overnight. The money market refers to the lending and borrowing of short-term, highly liquid, low-risk debt securities. The capital market refers to the market for longer-term debt and equity securities. The Eurodollar market refers to the market for dollar-denominated deposits held outside the United States.

The Borrowing and Loaning of Reserves Among Depository Institutions, Typically