Hi HB, the following is verbatim from a Federal Reserve publication: pursuant to the Monetary Control Act of 1980, "all depository institutions - commercial banks, savings banks, savings and loans, credit unions, U.S. agencies and branches of foreign banks, and Edge Act and agreement corporations - are subject to reserve requirements set by the Federal Reserve. The Board of Governors may impose requirements on transaction deposits and on nonpersonal time deposits solely for the purpose of implementing monetary policy, and these requirements must be applied uniformly to all similar accounts at all depository institutions. The reserve requirement may range from 8 percent to 14 percent on transaction deposits, which include demand deposits and interest-bearing accounts that offer unlimited checking privileges."
As you know, a money-market account does not allow unlimited checking privileges, but wouldn't it be considered a demand deposit? I will look all this up if you really want to know it. You've stimulated my curiosity, as well.
By the way, it goes without saying, I suppose, that if something is not included, it is, by necessary implication, excluded. Which is a fancy way of saying that your brokerage [and mine] isn't on the list of depository institutions, so not covered by the act.
CB |
