Medium term notes issued by a U.S. DI
A)generally have a maturity of five to seven years.
B)are a stable source of funds with low withdrawal risk.
C)are not subject to reserve requirements.
D)are not subject to deposit insurance.
E)All of the abovE.

Question

Quizplus · Accepted Answer

Medium-term notes issued by a U.S. DI generally have a maturity of five to seven years, which makes them a medium-term source of funds. They are typically considered a stable source of funds with low withdrawal risk. These notes are not subject to reserve requirements and are not insured by the FDIC, making them riskier than insured deposits. Therefore, all of the above options are correct.

Medium Term Notes Issued by a U.S. DI