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The Third National Bank has an excess of reserves and is willing to lend them overnight to another depository institution that has a temporary shortage;

The Third National Bank has an excess of reserves and is willing to lend them overnight to another depository institution that has a temporary shortage; this lending and borrowing transaction involves the use of:

a. certificate of deposit

b. commercial paper

c. federal funds

d. money market mutual fund

e. repurchase agreement

f. u.s treasury bill

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