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Question
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.
Answer
This answer is hidden. It contains 1 characters.
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