NHTM - CHAPTER 12

The volume of core deposits at U.S. banks has been growing in recent years relative to other categories of deposits.

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The U.S. Treasury keeps most of its operating funds in TT&L deposits, according to the textbook.

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Deposits owned by commercial banks and held with other banks are called correspondent deposits.

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The implicit interest rate on checkable deposits equals the difference between the cost of supplying deposit services to a customer and the amount of the service charge actually assessed that customer.

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Legally imposed interest-rate ceilings on deposits were first set in place in the United States after passage of the Bank Holding Company Act.

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Gradual phase-out of legal interest-rate ceilings on deposits offered by U.S. banks was first authorized by the Glass-Steagall Act.

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The contention that there are certain banking services (such as small loans or savings and checking accounts) that every citizen should have access to is usually called socialized banking.

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Domestic deposits generate legal reserves.

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Excess legal reserves are the source out of which new bank loans are created.

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Demand deposits are among the most volatile and least predictable of a bank's sources of funds with the shortest potential maturity.

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