Which of the following is a non-discretionary factor that will increase a bank's daily reserves held at the Federal Reserve?
A) Federal funds sold
B) Receiving a discount window loan
C) Remittances charged
D) Security sales
E) Deposits from the U.S. Treasury

Question

Quizplus · Accepted Answer

Deposits from the U.S. Treasury are non-discretionary, meaning the bank has no control over them. These deposits increase the bank's daily reserves held at the Federal Reserve. The other options listed are discretionary factors, which the bank can control and may or may not choose to do so depending on their specific needs and circumstances.

Which of the Following Is a Non-Discretionary Factor That Will