Which of the following is NOT correct with respect to the federal funds market?
A) It allows depository institutions to accommodate the short-term liquidity needs of other financial institutions.
B) Federal funds purchased (borrowed) represent an asset to the borrowing bank and a liability to the lending bank .
C) It is typically most active on Wednesday when banks that are short of required reserves must compensate before the settlement period ends.
D) All of these are correct.
Correct Answer:
Verified
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