In this type of arrangement, any balances above a certain amount in a corporation's checking account at the end of the business day are "removed" and invested in overnight securities that pay the corporation interest. This innovation is referred to as a
A. sweep account.
B. share draft account.
C. removed-repo account.
D. stockman account.
Answer:A
In this type of arrangement, any balances above a certain amount in a corporation's checking account at the end of the business day are "removed" and invested in overnight securities that pay the corporation interest. This innovation is referred to as a
A. sweep account. B. share draft account. C. removed-repo account. D. stockman account.