18-54 Fed funds are subject to settlement risk,but have little or no early withdrawal risk.

Name: 18-54 Fed funds are subject to settlement risk,but have little or no early withdrawal risk.
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Question

Quizplus · Accepted Answer

Fed funds are subject to settlement risk because they involve the transfer of funds between banks, which is not final until the settlement date. However, they typically have little or no early withdrawal risk because they are short-term loans between banks and cannot be withdrawn before their maturity date.

18-54 Fed Funds Are Subject to Settlement Risk,but Have Little