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Home > QFINANCE Dictionary > Definition of Federal Funds

Definition of

Federal Funds


US reserves deposits held in reserve at the Federal Reserve by the US banks. The Federal Funds rate, the rate that the Federal Reserve charges banks for borrowing reserves, is the key US monetary policy rate.

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Definitions of ’Federal Funds’ and meaning of ’Federal Funds’ are from the book publication, QFINANCE – The Ultimate Resource, © 2009 Bloomsbury Information Ltd. Find definitions for ’Federal Funds’ and other financial terms with our online QFINANCE Financial Dictionary.

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