Another Method That May Be Employed by Banks to Lower

question 70

Multiple Choice

Another method that may be employed by banks to lower required reserves is to

• A)transfer deposits to another domestic bank on Friday and transfer them back on the following Monday.
• B)sweep demand deposits into higher interest-bearing accounts on Friday with a return sweep the following Monday.
• C)rely more heavily on zero explicit interest-rate deposits.
• D)delay posting deposits made on Friday until the following Monday.

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Definitions:

Superior Rectus

A muscle in the eye that controls upward eye movement and is one of the six extraocular muscles.

Inferior Rectus

A muscle in the eye that is responsible for downward eye movement.

Coracobrachialis

A muscle in the shoulder that assists in flexing and adducting the arm at the shoulder joint.

Pectoralis Major

A significant muscle located in the upper part of the chest that helps with shoulder and arm movements.