Another Method That May Be Employed by Banks to Lower

Multiple Choice

Another method that may be employed by banks to lower required reserves is to

A) transfer deposits to another domestic bank on Friday and transfer them back on the following Monday.
B) sweep demand deposits into higher interest-bearing accounts on Friday with a return sweep the following Monday.
C) rely more heavily on zero explicit interest-rate deposits.
D) delay posting deposits made on Friday until the following Monday.
E) do nothing, because reserve requirements cannot be avoided.