Sweep accounts
A)have made reserve requirements nonbonding for many banks.
B)sweep funds out of deposit accounts into long-term securities.
C)enable banks to avoid paying interest to corporate customers.
D)reduce banks' assets.

Question

Quizplus · Accepted Answer

Sweep accounts have made reserve requirements nonbonding for many banks by automatically transferring excess balances in a deposit account to a separate account to meet reserve requirements. This reduces the need for banks to hold excess reserves in idle accounts.

Sweep Accounts