Federal Fund Rate Multiple Choice Questions with Answers – PDF Download

MCQ 1: In borrowing and lending of federal funds, the federal funds rate is result of function between:

1. assets and liability
2. cost and marketing
3. supply and demand
4. income and expense

MCQ 2: The accounting entry of the institutions who lend federal funds to other institutions is posted as:

1. liability on balance sheet
2. assets on balance sheet
3. income in income statement
4. expense on income statement

MCQ 3: The federal funds are loans borrowed and lent on:

1. single payment basis
2. monthly payment basis
3. semiannual payment basis
4. annual payment basis

MCQ 4: The accounting entry of the institutions who borrow federal funds is as:

1. income in income statement
2. expense on income statement
3. liability on balance sheet
4. assets on balance sheet

MCQ 5: The interest rate at which the federal funds are borrowed and can be lent is classified as:

1. borrowing rate
2. supplying rate
3. lending rate
4. federal funds rate