In addition to borrowing reserves from the Federal Reserve, banks can borrow them from one another in the:
A) stock market.
B) Inter-bank Market.
C) Federal Funds market.
D) market for mutual funds.

Question

Quizplus · Accepted Answer

Banks can borrow reserves from one another in the Federal Funds market, which is a key component of the interbank lending system where banks lend excess reserves to one another, usually on an overnight basis.

In Addition to Borrowing Reserves from the Federal Reserve, Banks