NOW Accounts Were Developed in Order to

question 43

Multiple Choice

NOW accounts were developed in order to

• A)circumvent Regulation Q.
• B)provide banks with a checkable deposit on which they did not have to pay interest.
• C)provide banks with a liquid, interest-earning asset.
• D)provide banks with a means of earning interest on the funds in their reserve accounts with the Fed.

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Definitions:

Tropical Cyclones

Powerful storm systems characterized by a low-pressure center, strong winds, and heavy rain, forming over warm tropical oceans.

Hurricane

A tropical cyclone with wind speeds of 74 miles per hour or greater that occurs especially in the western Atlantic, affecting coastal areas with heavy rain and destructive winds.

Typhoon

A tropical cyclone occurring in the western part of the North Pacific Ocean, characterized by strong winds, heavy rain, and storm surges.

Temperate Rain Forests

Ecosystems located in temperate regions characterized by high rainfall, dense forests, and a diverse range of plant and animal species.