Which of the Following Is the Result of Using "Sweep

question 114

Multiple Choice

Which of the following is the result of using "sweep accounts" in which high reserve ratio demand deposits are "swept" out of customers' accounts on Friday into higher interest-bearing savings accounts?

• A)Increased reserve requirements for the bank.
• B)Higher average balances in a DI's demand deposit.
• C)Lower required reserve holdings at the Federal Reserve.
• D)Lower interest burden for the bank.
• E)None of the above.

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Definitions:

Québec

A province in eastern Canada, known for its predominantly French-speaking population and unique cultural heritage.

Air Mass

A volume of air defined by its temperature and water vapor content that moves across large areas of the Earth's surface.

Surface

The outermost layer or boundary of an object or material which is in direct contact with the surrounding environment.

Hot And Dry

Describes climates or conditions with high temperatures and low precipitation, typical of deserts or arid regions.