CHAP 12

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

• True

• False

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

• True

• false

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

• true

• false

34. 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.

• TRUE

• FALSE

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

• T

• F

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

• T

• F

37.       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.

• T

• F

38. Domestic deposits generate legal reserves..

• T

• F

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

• T

• F

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

• T

• F