Term Fed funds

(redirected from Term Federal Funds)

Term Fed funds

Fed funds sold for a period of time longer than overnight.

Term Fed Funds

Federal funds that a bank borrows for a period of more than one day. Generally speaking, term fed funds have a maximum maturity of 90 days. Banks borrow term fed funds when they need to borrow funds for an extended (but still short-term) period of time and wish to lock in a low interest rate.
References in periodicals archive ?
For pricing three-, four-, five-, and six-month term federal funds, we use expressions analogous to equation (7).
6 We use T-bills rather than term federal funds because coefficient estimates using the federal funds rate are insignificant.