Federal Funds

http://www.investopedia.com/terms/f/federalfunds.asp#axzz1z37uCMnB

Definition of 'Federal Funds'
Funds deposited to regional Federal Reserve Banks by commercial banks, including funds in excess of reserve requirements.


Investopedia explains 'Federal Funds'
These non-interest bearing deposits are lent out at the Fed funds rate to other banks unable to meet overnight reserve requirements.

 

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