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:

Abdominal Aorta

The largest artery in the abdominal cavity, supplying blood to most of the abdominal organs.

Pneumothorax

A medical condition where air enters the space between the lung and chest wall, causing the lung to collapse.

Respiratory Distress Syndrome

A serious condition that affects the lungs, characterized by insufficient surfactant leading to lung collapse, common in premature infants.

Forced Expiration

The act of expelling air from the lungs with effort beyond normal exhalation, often used in respiratory function testing.