If a bank needs to acquire funds quickly to meet an unexpected deposit outflow,the bank could

Question

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Borrowing from another bank in the federal funds market is the quickest way to acquire funds in the short term. The federal funds market is a market where banks trade reserves with each other, and borrowing from this market can be done quickly and easily. Buying U.S. Treasury bills or corporate bonds may take longer, and increasing loans may not be feasible if the bank does not have sufficient funds to lend.

If a Bank Needs to Acquire Funds Quickly to Meet