Define federal funds, federal funds market, and federal funds rate.
Federal funds are funds of a ______ (depository/nondepository) nature, which can be used as a _____ (temporary/permanent) source of funds for banks and represent _____ (an asset/liability) to the borrowing bank and _____ (an asset/liability) to the lending bank that sells them.
The federal funds market is a source of _______ (depository/nondepository) funds, which allows depository institutions to accommodate the ________ (long term/short term) liquidity needs of other financial institutions.
The federal funds rate is the interest rate charged in the federal funds market, which is usually _______ (different/the same) for all banks borrowing in this market.