Final answer:
The federal funds market allows banks to borrow funds from banks with excess reserves. This statement is true.
Step-by-step explanation:
The statement is true. The federal funds market is a market where banks with excess reserves lend funds to banks that fall short of the reserve requirement. This allows the banks with excess reserves to earn interest on their funds while providing the necessary funds to other banks. This market helps to maintain the overall stability of the banking system.