The most popular domestic source of borrowed reserves for U.S.banks is:
A)Federal funds market.
B)money market negotiable CDs.
C)Eurodollar market.
D)borrowings from the Federal Reserve Banks.
E)commercial paper market.

Question

Quizplus · Accepted Answer

The Federal funds market is the most popular domestic source of borrowed reserves for U.S. banks. This market involves banks borrowing and lending reserves to each other overnight to meet reserve requirements or to maintain their desired level of reserves. The interest rate in this market is called the federal funds rate and it is a key benchmark for short-term interest rates.

The Most Popular Domestic Source of Borrowed Reserves for U