The Fed funds market is most volatile on a bank:
A)computation day.
B)settlement day.
C)reserve day.
D)maintenance day.
E)holiday.

Name: The Fed funds market is most volatile on a bank: A)computation day. B)settlement day. C)reserve day. D)maintenance day. E)holiday.
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Question

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Settlement day is when banks are most likely to experience volatility in the Fed funds market as they ensure they meet reserve requirements by the end of the maintenance period, leading to increased borrowing or lending activity.

The Fed Funds Market Is Most Volatile on a Bank