Asked by
Mahsa Tahmasebi
on Nov 11, 2024
Verified
Banks in need of reserves can borrow from the Fed or in the federal funds market.
Federal Funds Market
A financial market that allows banks to borrow or lend excess reserves to one another, usually on an overnight basis.
- Delve into the Federal Reserve's application of monetary policy tools for the purpose of economic manipulation.
- Grasp the implications of the reserve requirement and the discount rate on banking operations.
Verified Answer
FR
Learning Objectives
- Delve into the Federal Reserve's application of monetary policy tools for the purpose of economic manipulation.
- Grasp the implications of the reserve requirement and the discount rate on banking operations.