Federal Funds MCQ (Multiple Choice Questions) PDF Download

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

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

The transaction of federal funds usually take place in the form of

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

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

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