For what type of borrowing does the federal funds rate apply? from commercial banks to other...

Question

Question

For what type of borrowing does the federal funds rate apply?

	from commercial banks to other commercial banks
	from consumers to commercial banks
	from Federal Reserve Bank to commercial banks
	from commercial banks to the government

Answer 1

Answer #1

FROM COMMERCIAL BANKS TO OTHER COMMERCIAL BANKS.

They use to borrow fed funds from. Each other and use to pay interest rate over it that is known as fed fund rate

Answer 2

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