The Federal funds rate is the rate that banks pay for loans from:

1. The Fed
2. The US Treasury
3. Other banks
4. Large corporations
Anonymous User
Anonymous User
Asked Apr 26, 2012
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The Federal Funds Rate is the overnight rate at which banks lend to each other. The target rate is set by the Federal Open Market Committee, made up of presidents of Federal Reserve banks.
Answered Apr 27, 2012
It is an overnight loan but it is applicable only to a creditworthy institutions and it is a short term loan.
Answered Jan 17, 2015

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