Which of the Following Is False

question 54

Multiple Choice

Which of the following is false?

• A)Retail sweep accounts "sweep" balances out of transactions accounts that are subject to reserve requirements and into other accounts that are not.
• B)Retail sweep accounts have experienced enormous growth since they were introduced in 1994.
• C)Because of retail sweep accounts, required reserves have fallen significantly.
• D)The decline in required reserves due to retail sweep accounts gives the Fed more precise control over the fed funds rate and the implementation of monetary policy.

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Definitions:

Collection Activities

Actions taken by businesses or agencies to collect debts owed by customers or clients.

Total Collection Time

The total amount of time taken to collect payments from customers from the point of sale to the actual receipt of funds.

Customer Cheques

Checks written by customers to pay for goods or services.

Monthly Statements

Financial reports that are issued at the end of each month detailing the financial activities, such as income and expenses, over the course of that month.