Reserve Requirements Reg D Flashcards
On a nontransferable certificate of deposit, which of the following activities is NOT allowed?
a. The customer’s certificate is redeemed early owing to his or her death.
b. The customer discounts the certificate on a public market.
c. The customer pledges the certificate against his or her consumer loan.
d. The certificate is redeemed through the judicial action of a creditor exercising its legal remedies under the law.
b. The customer discounts the certificate on a public market.
Which of the following phrases, if stamped on a time deposit, is NOT effective to make the deposit nontransferable?
a. Not negotiable
b. Transferable only on the records of the bank
c. Transferable only with the permission of the bank
d. Not transferable
a. Not negotiable
Which of the following bank products are considered to be transaction accounts?
a. A time deposit that has a maturity of at least seven days
b. A savings account from which the customer regularly makes more than six telephone transfers per month
c. A money market certificate of deposit where the interest is creditedmonthly to another account of the depositor
d. A savings account into which weekly deposits are made from a checking account pursuant to the depositor’s telephone requests
b. A savings account from which the customer regularly makes more than six telephone transfers per month
Which one of the following items is NOT eligible as a form of reserves?
a. Vault cash
b. Balance maintained with the Federal Reserve Bank
C. Pass-through account maintained at a member bank
d. Government securities
d. Government securities
Which of the following accounts is subject to reserve requirements of greater than zero percent?
a. A savings account owned by an individual
b. An IRA account
c. A time deposit owned by a trust for an individual
d. A checking account owned by an individual
e. None of the above
e. None of the above
Which of the following is a true statement regarding the imposition of charges for reserve deficiencies?
a. A penalty is always required for deficient reserve balances
b. Federal Reserve Banks may waive penalties for deficient reserve balances
c. An institution may choose to pay a penalty or maintain excess reservesbduring the next reserve period
d. Penalties are optional with the Federal Reserve Bank in all circumstances
b. Federal Reserve Banks may waive penalties for deficient reserve balances
When may the Federal Reserve institute supplemental reserve requirements in addition to the basic reserve requirements?
a. When additional balances are needed for clearing purposes
b. When supplemental reserves are needed to impose monetary policy
c. When additional balances are needed to supplement the regular reserve cost structure
d. When the President directs it by Executive Order
b. When supplemental reserves are needed to impose monetary policy
