The largest banks rely heavily on the ____ for daily reserve management.
A) Discount window
B) Commercial paper market
C) Lagged reserve accounting
D) Federal funds market
E) Treasury bill market

Question

Quizplus · Accepted Answer

The Federal funds market is crucial for daily reserve management among the largest banks, as it allows them to lend or borrow reserves overnight from each other to meet their reserve requirements.

The Largest Banks Rely Heavily on the ____ for Daily