1) are short-term funds transferred between financial institutions, usually for a period of one day
2) actually have nothing to do with the federal government
3) provide banks with an immediate infusion of reserves

Federal funds are funds that bank and entities exchange between each other to maintain bank reserves at the federal reseeve as well as to meet daily transactions. It can be called an overnight borrowing because the funding can only be borrowed for one day and must be returned within such albeit with some rate. The current rate is 10percent.

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1) are short-term funds transferred between financial institutions, usually for a period of one day 2) actually have nothing to do with the federal government 3) provide banks with an immediate infusion of reserves

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1) are short-term funds transferred between financial institutions, usually for a period of one day
2) actually have nothing to do with the federal government
3) provide banks with an immediate infusion of reserves