When savings institutions are unable to attract sufficient deposits, they can
A)borrow in the federal funds market.
B)borrow from the Federal Reserve.
C)borrow through a repurchase agreement.
D)All of these are correct.

Question

Quizplus · Accepted Answer

Savings institutions can borrow in the federal funds market, from the Federal Reserve, or through a repurchase agreement when they are unable to attract sufficient deposits. These are all mechanisms to secure short-term funding.

When Savings Institutions Are Unable to Attract Sufficient Deposits, They