Q. Which of the following is correct definition of sweep accounts?
Answer: Funds are automatically managed between two accounts
Notes: The most common deposit accounts are savings and checking. Deposit accounts fall into two major categories: demand deposits and time deposits. A deposit account in which amounts over a certain balance are automatically transferred to another account pursuant to a pre-determined set of arrangements is called a sweep account. In sweep accounts, funds are automatically managed between a primary cash account and secondary investment accounts.
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📌 Question Number: 8 in Bank Deposits & Deposit Insurance in the above course in App.