Which of the following is the market where reserves can be borrowed by one bank from another bank for very short periods of time?

Question

Quizplus · Accepted Answer

The Federal funds market is where banks borrow reserves from each other for very short periods of time, typically overnight. This allows banks to meet reserve requirements and maintain liquidity. The money market is a broader term that refers to a range of short-term borrowing and lending, including commercial paper and government securities. The commercial paper market is where corporations issue short-term debt to investors. The foreign exchange market is where currencies are traded.

Which of the Following Is the Market Where Reserves Can