Which of the Below Statements Is TRUE

Multiple Choice

Which of the below statements is TRUE?

A) A small amount of interest is earned on federal funds.
B) Typically, larger banks have excess reserves, while money center banks find themselves short of reserves and must make up the shortfall.
C) Most transactions involving fed funds last for only one night; that is, a bank with insufficient reserves that borrows excess reserves from another financial institution will typically do so for the period of one full day.
D) The repo, which consists of the sale of a security, will provide funds for a long period of time.