Multiple Choice
Offering institutions post lower yields on SNOWs than on MMDAs because:
A) ratings on institutions issuing SNOWs are higher.
B) SNOWs can be drafted more frequently by customers.
C) federal regulatory authorities classify MMDAs as transaction deposits.
D) MMDAs carry unlimited check-writing privileges.
E) MMDAs have longer maturities than SNOWs.
Correct Answer:
Verified
Correct Answer:
Verified
Q119: A bank expects to raise $30 million
Q120: Deposits held by banks with others are
Q121: The volume of core deposits at U.S.banks
Q122: The implicit interest rate on checkable deposits
Q123: Research suggests that a depository institution's location
Q125: Negotiable Order of Withdrawal (NOW)accounts-interest-bearing savings accounts
Q126: Some people feel that all individuals are
Q127: A(n)_ is a short-maturity deposit which pays
Q128: If you deposit $1,000 into a certificate
Q129: On October 28,2004,_ became law,permitting depository institutions