The federal funds are loans borrowed and lent on ____________?
Correct answer: A. single payment basis
- A. single payment basis
- B. monthly payment basis
- C. semiannual payment basis
- D. annual payment basis
Explanation
Federal funds are generally very short-term interbank loans, often overnight, that are settled as a single repayment rather than through monthly, semiannual or annual instalments. Thus they are made on a single-payment basis.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? support@testustad.com
About Business Finance
Business finance explains how organisations plan, obtain and use money while balancing risk, return and liquidity. Topics include financial statements, time value of money, budgeting, working capital, capital structure, sources of finance, investment appraisal and cost of capital. Capital budgeting evaluates long-term projects, whereas working capital manages day-to-day operations.
Practise Business Finance
975 free Business Finance MCQs from Management Sciences, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Exams that ask Management Sciences questions like this
Management Sciences is on 2 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More Business Finance questions
The banks that deals with reciprocal agreements and accounts are considered as ____________?
The treasury bills are issued to raise significant amount of funds by ____________?
The government regulates financial markets for two reasons which are __________?
The non-competitive bidders get the allocation of treasury bills on __________?
The interest rate paid on the traded Eurodollars is called as __________?
The submitted bids in the treasury bills auction consist of types which are _____________?