Sweep Accounts

question 20

Multiple Choice

Sweep accounts

• A)have made reserve requirements nonbonding for many banks.
• B)sweep funds out of deposit accounts into long-term securities.
• C)enable banks to avoid paying interest to corporate customers.
• D)reduce banks' assets.

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Definitions:

Discouraged Workers

Individuals not actively seeking employment due to believing no jobs are available for them or they would not qualify for the jobs that are available.

Full Employment

A situation in an economy where all available labor resources are being used in the most efficient way possible, typically associated with low unemployment rates.

Inflation

The tempo at which the collective cost of goods and services rises, impairing the purchasing potential.

Unemployment Insurance

A government program that provides temporary financial assistance to unemployed workers who have lost their jobs through no fault of their own.