A Primary Advantage for a Depository Institution of Belonging to the Federal

question 119

Multiple Choice

A primary advantage for a depository institution of belonging to the Federal Reserve System is

• A)direct access to correspondent banking services.
• B)the lower deposit reserves required under the Federal Reserve System.
• C)direct access to the discount window of the Fed.
• D)commission less trading of U.S.government securities.

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Definitions:

Transmitted

The process of sending or conveying something from one place or person to another.

Circuit Switching

Where a dedicated connection is formed between two points (such as two people on telephones) and the connection remains active for the duration of the transmission.

Dedicated Connection

A communication link reserved exclusively for the use of a specific service, user, or application, often guaranteeing constant bandwidth.

Transmission

Transmission refers to the process of transferring data or power from one place to another, often used in contexts like data transmission over networks or mechanical power transmission in machinery.