1. What is the best description of federal funds? _A. A market that allows for depository institutions to lend and borrow money, short term, to/from other depository institutions at a rate controlled by the federal reserve. B. Funds borrowed from the discount window. _C. Savings deposits by the US government. D. None of the above. 2. What are Federal Reserve Loans at the "Discount Window" are used for? A. A source of funds for banks when they want to expand their assets. _B. A source of funds for when banks experience unanticipated shortages of reserve. C. A source of funds with which the bank can purchase securities. D. A source of funds for the bank to pay dividends. 3. Which of the below are sources of funds for a commercial bank? A. Passbook savings B. Time deposits C. Federal funds borrowing _D. All of the above 4. Which of the below are uses of funds for a commercial bank ? _A. Consumer loans B. Cash C. Fixed assets _D. All of the above 5. Which of the following best describes capital requirements for a commercial bank? _A. The amount of cash a bank must keep on hand to cover customer withdrawals. _B. The minimum amount of capital (equity) banks must maintain to provide a cushion against loan losses. C. The amount of funds depoisited by the bank at the federal reserve. D. None of the above