Banks may borrow from or lend to another bank in the Federal Funds mar

Banks may borrow from or lend to another bank in the Federal Funds market. A loan of excess reserves from one bank to another bank is recorded as a(n) ________ for the borrowing bank and a(n) ________ for the lending bank.

A) asset; asset
B) asset; liability
C) liability; liability
D) liability; asset

ANSWER

D