Glossary BG Image

Federal funds

Browse Terms By Number or Letter:
Financial Terms By: f
Federal funds

A Federal Funds Transaction is an unsecured loan of U.S. dollars to a "borrower" or "purchaser" that is a Depository Institution from a "lender" or "seller" that is a Depository Institution, foreign bank, government-sponsored enterprise or other eligible entity. Note that Fed Funds liabilities are not subject to reserve requirements.

Copyright © 2018, Campbell R. Harvey. All Worldwide Rights Reserved. Do not reproduce without explicit permission.