Large banks tend to be net _______ in the federal funds market, while small banks tend to be net _______.
A) Borrowers, lenders
B) Buyers, holders
C) Lenders, sellers
D) Lenders, borrowers
E) Holders, buyers

Question

Quizplus · Accepted Answer

Large banks tend to be net borrowers in the federal funds market because they often have greater funding needs, while small banks typically have excess reserves and thus tend to be net lenders.

Large Banks Tend to Be Net _______ in the Federal