Federal funds


Funds deposited by commercial banks at Federal Reserve Banks. Designed to enable banks temporarily short of their reserve requirement to borrow reserves from banks having excess reserves.

Use Federal funds in a sentence

You should always try and know how much of the federal funds are available before you start any big new project.

​ Was this Helpful? YES  NO 6 people found this helpful.

Our small town bank had to dip into federal funds to cover the sudden rush of withdrawals following the announcement of the unstoppable apocalypse.

​ Was this Helpful? YES  NO 10 people found this helpful.

The influx of customers on Fridays tends to cause the banks to have to use federal funds to cover transactions as Fridays are often the busiest days that banks have and the number of customers that come in tends to be unpredictable.

​ Was this Helpful? YES  NO 4 people found this helpful.

Show more usage examples...

Mentioned in these terms

Browse Definitions by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
fed funds Federal funds rate