Reserve balances that depository institutions lend each other, usually on an overnight basis. In addition, Federal funds include certain other kinds of borrowing by depository institutions from each other and from federal agencies.

"Federal Funds" In Context

"As part of his most recent budget, President Obama has cut federal funds for Metro by 10 percent—and local leaders are not happy, reports WTOP. The federal government committed in 2010 to giving Metro $150 million per year in exchange for the transit ..."