_____________ are very short-term loans, usually with maturities of one day to one week made between depository institutions.

Question

Quizplus · Accepted Answer

The definition perfectly matches with the concept of federal funds. Overnight loans may be short-term loans, but they are not necessarily made between depository institutions. Commercial paper is a type of unsecured short-term debt issued by a company. A banker's acceptance is a time draft drawn on and accepted by a bank, often used in international trade.

_____________ Are Very Short-Term Loans, Usually with Maturities of One