A Financial Innovation That Enables Banks to Avoid the "Tax

question 69

Multiple Choice

A financial innovation that enables banks to avoid the "tax" from reserve requirements by taking any balances above a certain amount in a corporation's checking account at the end of the business day and investing them in overnight securities that pay interest is called a ________.

• A) money market mutual fund
• B) deposit rate ceiling
• C) sweep account
• D) disintermediation

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Definitions:

Patch Panel

A hardware device featuring multiple socket ports to connect and manage incoming and outgoing LAN cables.

UPS

Uninterruptible Power Supply, a device that provides emergency power to a load when the input power source fails.

Wake-on-LAN

A networking standard that allows a computer to be turned on or awakened from sleep mode by a network message.

PXE

Preboot eXecution Environment, a technology that allows computers to boot up using software received through a network, without the need for storage devices.