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Sweep account refers to: an account that sweeps cash from checking to personal s

ID: 356831 • Letter: S

Question

Sweep account refers to:

an account that sweeps cash from checking to personal savings.

an account that sweeps zero balance account to an interest bearing account.

an account that allows the small business owner to sweep funds between personal and business accounts.

All of these

a.

an account that sweeps cash from checking to personal savings.

b.

an account that sweeps zero balance account to an interest bearing account.

c.

an account that allows the small business owner to sweep funds between personal and business accounts.

d.

All of these

Explanation / Answer

SWEEP account is a banking arrangement in which a checking account balance above or below a certain amount is automatically transferred to and from an interest bearing ( saving or money market fund ) account. The objective of a sweep account is to maximize accountholder's interest earning while covering all withdrawals .

Therefore , correct answer would be "a. an account that sweeps cash from checking to personal savings"