Which of the following statements is true regarding NOW accounts?
A) are mostly a wholesale source of funds
B) are subject to reserve requirements
C) cannot offer interest rates higher than CD rate levels
D) offer limited check writing privileges

Question

Quizplus · Accepted Answer

NOW accounts are subject to reserve requirements as mandated by the Federal Reserve, which means banks must keep a certain percentage of deposits in reserve and cannot use all of it for lending or investment purposes.

Which of the Following Statements Is True Regarding NOW Accounts