Which of the Following Statements Is True About Federal Funds

question 86

Multiple Choice

Which of the following statements is true about federal funds?

• A) Federal funds offer loans at a coupon rate that is two times the market interest rate.
• B) Federal funds have very long maturities, often 3 years or more.
• C) Federal funds offer loans to the state government to meet the reserve requirements of the federal government.
• D) Federal funds are used to repay the T-bills issued by the federal government.
• E) Federal funds are used by banks to meet the reserve requirements of the Federal Reserve.

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Definitions:

Private Modifier

A keyword in programming that restricts access to members of a class (such as methods or variables) to the class itself.

Private Instance Variable

A variable defined in a class that cannot be accessed directly from outside the class, providing a level of data encapsulation.

Wrapper Class

A class that encapsulates primitive data types into objects, allowing primitives to be used as objects.

Primitive Type

Basic data types provided by a programming language as building blocks, such as int, char, and float in Java.