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Federal Funds Market

Source: Encyclopedia of Banking & Finance (9h Edition) by Charles J Woelfel
(We recommend this as work of authority and you can order it here)                  

A market for unsecured loans between depository institutions in the United States in immediately available funds, primarily reserves held at Federal Reserve banks.  Typically most activity is for next-day maturity.  Term federal funds refers to longer maturities up to several weeks or months.


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