18-88 Which of the Following Is the Result of Using

question 24

Multiple Choice

18-88 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:

Asset Purchase

A type of business transaction in which the buyer acquires specific assets of a company, rather than its shares.

Share Purchase

The act of buying ownership stakes in a company, represented by shares, indicating partial ownership.

Corporate Security

Strategies and measures adopted by a corporation to protect its assets, intellectual property, and employees.

Fixed Charges

Fixed charges are ongoing, regular expenses that a company or individual must pay, such as loans, rent, and utility bills, which do not vary with business volume or activity.