Federal Funds Multiple Choice Questions and Answers PDF

MCQ 1: The banks that deals with reciprocal agreements and accounts are considered as:

1. correspondent banks
2. non-correspondent banks
3. reciprocal transactions
4. functional banks

MCQ 2: The transactions that came into being when borrowing and lending of excess money occurs, are considered as:

1. annual funds transaction
2. liable funds transactions
3. federal funds transaction
4. functional funds transaction

MCQ 3: The transaction of federal funds usually take place in the form of:

1. functional loans
2. annual loans
3. unsecured loans
4. secured loans

MCQ 4: The type of funds that have transfer transactions between financial institutions are classified as:

1. federal funds
2. premium funds
3. discount funds
4. mean funds

MCQ 5: The most flexible and liquid source of funding for savings banks is:

1. annual loan market
2. federal funds market
3. functional funding market
4. secured funding market