Borrowed reserves are defined as reserves that have been borrowed:
A) From other banks through the Federal funds market
B) From the discount windows at the Federal Reserve banks
C) Through repurchase agreements with government securities dealers
D) From life insurance companies' policy reserves
E) From money market mutual funds

Question

Quizplus · Accepted Answer

Borrowed reserves refer to the funds that banks borrow directly from the Federal Reserve, typically through the discount window, to meet reserve requirements or manage liquidity. Options A, C, D, and E involve borrowing from sources other than the Federal Reserve.

Borrowed Reserves Are Defined as Reserves That Have Been Borrowed