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:

Range of Reaction

The concept that an individual's genetic makeup establishes a range for potential phenotypic outcomes, which can be influenced by the environment.

Behavior Genetics

The field of study that examines how genes and environment combine to influence the diversity of human traits, abilities, and behaviors.

Canalization

A genetic term referring to the tendency of an organism to develop in a predetermined way, despite variations in environment or genetics.

Gene-environment Correlation

This concept describes how genetic factors influence an individual's exposure to certain environments.