Most short-term bank borrowing is from:

Question

Quizplus · Accepted Answer

Most short-term bank borrowing is from other banks through the interbank market. Banks borrow funds from other banks to meet short-term liquidity needs or to maintain reserve requirements. The interbank market is a way for banks to lend and borrow from each other to manage their cash balances and meet regulatory requirements. The Fed also plays a role in the interbank market by offering overnight loans to banks, but this is a less common form of short-term borrowing. Large pension funds and depositors are not typically sources of short-term bank borrowing.

Most Short-Term Bank Borrowing Is From