Non-bank thrift institutions that offer transaction accounts must keep reserve balances at the Federal Reserve banks.

Question

Quizplus · Accepted Answer

Non-bank thrift institutions, like savings and loan associations, are required to maintain reserve balances with the Federal Reserve if they offer transaction accounts to their customers, similar to the requirements imposed on traditional banks. This is to ensure liquidity and stability within the financial system.

Non-Bank Thrift Institutions That Offer Transaction Accounts Must Keep Reserve