The overnight loans transaction are part of trading of _____________?
Correct answer: B. federal funds
- A. extensive funds
- B. federal funds
- C. intensive funds
- D. premium funds
Explanation
Overnight borrowing and lending among banks is conducted in the federal funds market. These transactions help institutions adjust their reserve balances over very short periods.
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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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