Which of the following statements is most correct?
A. Discount loans are initiated by the Federal Reserve.
B. Discount loans are made when banks need small amounts of cash for the long term.
C. Float is a byproduct of the Fed's check clearing business.
D. Float loans are initiated by the commercial banks.
Answer:C
Which of the following statements is most correct?
A. Discount loans are initiated by the Federal Reserve. B. Discount loans are made when banks need small amounts of cash for the long term. C. Float is a byproduct of the Fed's check clearing business. D. Float loans are initiated by the commercial banks.