Which of the following observations is true of nontransaction ...

[Anajune7]

Which of the following observations is true of nontransaction deposits?
 a. depositor can use them directly as a means of payment
 b. they do not pay any interest
 c. depositor cannot directly write checks against them
 d. they generally pay lower interest rates than transaction deposits

Question 2

The quantity of excess reserves in the banking system and the federal funds rate can serve as short-run operating targets for the FOMC and help it perform the open market operation.
 a. True
  b. False
  Indicate whether the statement is true or false

[essyface1]

Answer to Question 1

c

Answer to Question 2

True