The federal funds rate reflects the "price"
of reserves in the banking system.

Name: The federal funds rate reflects the "price" of reserves in the banking system.
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Question

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The federal funds rate is the interest rate at which depository institutions trade federal funds (balances held at Federal Reserve Banks) with each other overnight. It effectively reflects the "price" of borrowing reserves in the interbank market.

The Federal Funds Rate Reflects the "Price