The Fact That There Is a Market for Federal Funds

question 91

Multiple Choice

 The fact that there is a market for federal funds enables banks to: ?

• A) make fewer loans than they would otherwise.?
• B) borrow more from the Fed.?
• C) hold a lower level of excess reserves than they would otherwise hold.?
• D) hold less in required reserves.

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Definitions:

Earnings Per Share

A financial metric that calculates the portion of a company's profit allocated to each outstanding share of common stock, indicating the company's profitability.

Return On

A financial metric used to measure the efficiency of an investment or compare the efficiency of a number of different investments.

Return On

A financial ratio measuring the gain or loss generated on an investment relative to the amount of money invested.

Total Assets

The sum of all assets owned by a company, including cash, inventory, property, and equipment, indicative of the company's total resources.