Which of the following is the result of using "sweep accounts" in which high reserve ratio demand deposits are "swept" out of customers' accounts on Friday into higher interest-bearing savings accounts?
A) Increased reserve requirements for the bank.
B) Higher average balances in a DI's demand deposit.
C) Lower required reserve holdings at the Federal Reserve.
D) Lower interest burden for the bank.
E) None of the above.
Correct Answer:
Verified
Q83: Which of the following liabilities have a
Q84: Demand deposits
A)have the same amount of withdrawal
Q85: The Federal Reserve allows the DI to
Q87: Under contemporaneous reserve accounting the
A)reserve maintenance period
Q88: Which of the following is a mechanism
Q90: The minimum daily average reserve requirement is
Q96: For reserve computation purposes, Friday balances
A)are excluded
Q97: Another method that may be employed by
Q98: Which of the following observations is true
Q100: The weekend game is
A)a strategy to reduce
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