Which of the following is a non-discretionary factor that will decrease a bank's daily reserves held at the Federal Reserve?
A)Deferred availability items
B)Receiving a discount window loan
C)Remittances charged
D)Excess balances at the local clearing house
E)Federal funds sold

Question

Quizplus · Accepted Answer

Remittances charged are fees that banks have to pay to the Federal Reserve for processing payments. This reduces the daily reserves held by the bank at the Federal Reserve. The other options listed, deferred availability items, receiving a discount window loan, excess balances at the local clearing house, and federal funds sold are all discretionary factors that can affect a bank's daily reserves, but they may not necessarily lead to a decrease in reserves.

Which of the Following Is a Non-Discretionary Factor That Will