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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