Match each phrase from list A with the correct term from list B by placing the letter designating in the answer Colum A All banks hold some of the funds they acquire as deposits in an account at the central bank. required reserves The amount of assets per dollar of equity capital Dequity multiplier Provisions in loan contracts that prohibit borrowers from engaging in specified risky activities restrictive covenants have made reserve requirements nonbinding for many banks Interest rate risk owners cannot write checks on these deposits but the interest paid on these deposits is usually Checkable deposits E higher than checkable deposits Non transaction deposits Rink that is related to the uncertainty about interest rate movements Reserves It includes all accounts on which checks can be drown. They are payable on demand discount rate # The cost associated with discount loans is the interest rate that must be paid to the Fed Moral Hazard The amount of checkable deposits that banks are required by regulation to hold Credit unions are dollar-dominated deposits held in banks outside the United States Eurodollars K are the only depository institutions that are tax-exempt Sweep accounts borrowers may have incentives to engage in activities that are undesirable from the lender's point Lof view