demand deposits less interbank and U.S. government deposits and less cash
items in process of collection (so-called float) appear as "demand
deposits adjusted" in memorandum form to the member bank call report.
This is a statistical measure designed by the Board of Governors
of the Federal Reserve System to indicate aggregate net balances in checking
accounts of individuals, partnerships, corporations, and state and local
government bodies, after allowing for checks outstanding against these
gross deposits and demand deposits adjusted are to be distinguished from
net demand deposits, or deposits subject to reserve requirements according
to the definition of "net demand deposits" by the Board of Governors
of the Federal Reserve System in accordance with banking law.
In accordance with the Banking Act of 1935, net demand deposits
are the excess of all demand deposits, including deposits due to other
banks and the United States government, over demand balances due from
other domestic bank (except Federal Reserve banks, foreign banks or branches
thereof, foreign branches of domestic banks, and private banks), and cash
items in process of collection.
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