Banks Make Use of the Federal Funds Market in Part

question 37

Multiple Choice

Banks make use of the federal funds market in part to

• A)pay their tax liabilities.
• B)manage liquidity risk.
• C)deal with moral hazard.
• D)deal with adverse selection.

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Definitions:

Inches

A unit of length in the imperial and US customary systems, equivalent to 1/12th of a foot.

Dimensional-analysis

A technique utilized for converting measurements by applying the fundamental properties of dimensions associated with the variables involved.

Centimeters

A unit of length in the metric system, equal to one hundredth of a meter, commonly used to measure small distances.

Inches

A unit of length in the British imperial and the United States customary systems, equal to 1/12 of a foot.