Federal funds are excess reserves held by the Federal Reserve Banks that are loaned to banks that have liquidity needs.
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Q50: In the U.S., a subsidiary bank can
Q51: Short-term CDs often are priced competitively with
Q52: Fed funds are subject to settlement risk,
Q53: Fed funds are short-term uncollateralized loans with
Q54: Because MMDAs are in direct competition with
Q56: FIs participating in the fed funds market,
Q57: Passbook savings accounts are less liquid than
Q58: In the U.S., MMDAs typically are transaction
Q59: The negotiable instrument characteristic of large wholesale
Q60: Passbook savings accounts normally receive a lower
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