ABSTRACT A growing number of large U.S. banks have used artificial Eurodollar transactions in connection with the heavier weighting of Fridays in the calculation of required reserves to significantly reduce the impact on them of that requirement. This reserve avoidance behavior bestows an unintended and inequitable benefit on those banks engaging in it, unnecessarily increases risks from credit exposures and potentially distorts money stock measures. The incentive for this activity and hence its practice can best be removed by paying interest on required reserves or weighting Fridays equally with all other business days in the reserve requirement calculations.

A growing number of large U.S. banks have used artificial Eurodollar transactions in connection with the heavier weighting of Fridays in the calculation of required reserves to significantly reduce the impact on them of that requirement. This reserve avoidance behavior bestows an unintended and inequitable benefit on those banks engaging in it, unnecessarily increases risks from credit exposures and potentially distorts money stock measures. The incentive for this activity and hence its practice can best be removed by paying interest on required reserves or weighting Fridays equally with all other business days in the reserve requirement calculations.

Richard L. Peterson, Credit Unions: Theory, Empirical Evidence and Public Regulation: Discussion, The Journal of Finance, Vol. 36, No. 2, Papers and Proceedings of the Thirty Ninth Annual Meeting American Finance Association, Denver, September 5-7, 1980 (May, 1981), pp. 550-552

Partial table of contents: THE ANALYTICAL FRAMEWORK. The American Real Estate Industry: An Overview. Regional and Urban Economics. Spatial Economics: Rent, Situs, and Succession Theory. THE LEGAL ENVIRONMENT. Real Estate Interests and Forms of Ownership. Transferring Real Estate Interests. VALUATION AND THE APPRAISAL PROCESS. The Sales Comparison Approach and the Cost Approach. MARKETING, BROKERAGE, AND MANAGEMENT. Marketing. Brokerage. Asset Management: The Property Management Perspective. REAL ESTATE FINANCE. The Financial System and Real Estate Finance. Financing Mechanics: The Borrower's Perspective. Mortgage Underwriting: The Lender's Perspective. The Secondary Mortgage Markets. REAL ESTATE TAXATION. Income and Property Taxation. INVESTMENT ANALYSIS. Principles of Investment. The Discounted Cash-Flow Model. REAL ESTATE DEVELOPMENT. Land Use Feasibility Analysis. PUBLIC POLICY AND PROSPECTS FOR THE FUTURE. Government Involvement. Appendix. Compound Interest Tables. Glossary. Index.