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For what type of borrowing does the federal funds rate apply? from commercial banks to other...

For what type of borrowing does the federal funds rate apply?
from commercial banks to other commercial banks
from consumers to commercial banks
from Federal Reserve Bank to commercial banks
from commercial banks to the government
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Answer #1

FROM COMMERCIAL BANKS TO OTHER COMMERCIAL BANKS.

They use to borrow fed funds from. Each other and use to pay interest rate over it that is known as fed fund rate

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