Question
Like banks, which of the following is required to keep a certain percentage of their checkable deposits as "reserves"?
Multiple choice question.
The FDIC
Federal Reserve System
Thrift institutions
Credit card companies
Multiple choice question.
The FDIC
Federal Reserve System
Thrift institutions
Credit card companies
Answers
GPT-4o mini
The correct answer is **Thrift institutions**.
Thrift institutions, such as savings and loans and savings banks, are required to maintain reserves against their checkable deposits, similar to banks. The Federal Reserve sets the reserve requirements for depository institutions. The FDIC is an insurance corporation and does not directly manage reserve requirements, and credit card companies are not required to maintain reserves as they do not accept deposits.
Thrift institutions, such as savings and loans and savings banks, are required to maintain reserves against their checkable deposits, similar to banks. The Federal Reserve sets the reserve requirements for depository institutions. The FDIC is an insurance corporation and does not directly manage reserve requirements, and credit card companies are not required to maintain reserves as they do not accept deposits.