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

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The federal funds market is where banks can lend and borrow reserves from one another for very short periods of time, typically overnight. This market is important for banks to meet their reserve requirements and maintain liquidity. The money market and commercial paper market involve longer-term lending and borrowing, and are not specific to interbank transactions.

Which of the Following Is the Market Where Reserves Can