Which of the Following Is the Result of Using "Sweep

question 93

Multiple Choice

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 options.

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Definitions:

Client Confidentiality

The ethical obligation of professionals, especially in legal and medical fields, to keep information given by or about their clients secret from others.

Negligence

The failure to take reasonable care to avoid causing injury or loss to another person, resulting in liability for any damage resulting from this lack of care.

Civil Wrong

A violation of a person's rights or a failure to perform a legal duty owed to a specific individual or society, known as a tort.

Tort

A civil wrong not arising from a breach of contract. A breach of a legal duty that causes harm or injury to another.