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4. How does the federal funds market affect transfer funds from small to large commercial banks? Facilitate adjustment to balance shocks of commercial banks? Federal

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4. How does the federal funds market affect transfer funds from small to large commercial banks? Facilitate adjustment to balance shocks of commercial banks? Federal funds are very flexible money markets so this allows small and large banks to be able place overnight transfers between the two when smaller banks that have variations in cash flows and facilitates the balance shocks

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