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Federal funds

• Non-interest bearing deposits held in reserve for depository institutions at their district Federal Reserve Bank. Also, excess reserves lent by banks to each other.

• Loan transactions between commercial banks in which the Federal Reserve banks become involved.

• (1) Non-interest-bearing deposits held by member banks at the Federal Reserve. (2) Used to denote "immediately available" funds in the clearing sense.

 
 

Follow this link for all the terms related to fundfunds.

 
 Embedded terms in definition
 Clearing
Commercial
Excess reserves
Held
Member
Reserve
 
 Related Terms
 

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