The funds transferred usually for a day between financial institutions are classified as __________?
Correct answer: A. federal funds
- A. federal funds
- B. banker's funds
- C. debt funds
- D. secured fundsTry Prep Courses
Explanation
Federal funds are generally short-term, often overnight, funds transferred between financial institutions, especially through balances held at the Federal Reserve. They are not necessarily secured funds.
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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.
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