Federal Fund Rate MCQ (Multiple Choice Questions) PDF Download

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

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

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

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

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