Retail Sweep Accounts

question 12

Multiple Choice

Retail sweep accounts

• A)involve the relabeling of deposit liabilities to nondeposit liabilities.
• B)"sweep" balances out of transactions accounts that are subject to reserve requirements and into other accounts that are not.
• C)cause required reserves to fall by the amount of funds swept into sweep accounts multiplied by the required reserve ratio.
• D)All of the above are correct

---

Definitions:

Depreciates

The decrease in the value of an asset over time, often due to wear and tear or the introduction of newer models.

Domestic Investment

The total investment in capital assets (such as factories, machinery, and technology) within a country's borders, contributing to the nation's economic growth.

Euro

The official currency of the eurozone, which is used by 19 of the 27 European Union countries.

Net Exports

The value of a country's total exports minus its total imports, measuring the net trade of goods and services with other economies.