Select TWO true statements about money. a. Base money is equal to cash plus commercial bank reserves with the central bank b. Cash is a liability of the central bank c. If a commercial bank makes a loan and credits the borrower's current account, then base money increases d. Commercial bank reserves with the central bank appear as a liability in their balance sheets

Select TWO true statements about money. a. Base money is equal to cash plus commercial bank reserves with the central bank b. Cash is a liability of the central bank c. If a commercial bank makes a loan and credits the borrower's current account, then base money increases d. Commercial bank reserves with the central bank appear as a liability in their balance sheets

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter17: Accounting For Notes And Interest

Section: Chapter Questions

Problem 12RQ: When a business borrows money from a bank on a non-interest-bearing note, how are the bank discount...

See similar textbooks

Similar questions

Which of the following are found on the bank side of the bank reconciliation? A. NSF check B. interest income C. wire transfer into clients account D. deposit in transit
The major assets on a commercial bank's balance sheet include 0 0 0 0 checkable deposits, securities, loans, and vault cash. reserves, securities, loans, and vault cash. reserves, checkable deposits, loans, and vault cash. reserves, securities, loans, and checkable deposits. The major liabilities on a commercial bank's balance sheet are Oloans. Ocheckable deposits. Ovault cash. O reserves.
From a bank's viewpoint, a customer's account in the bank is considered a: a.donation. b.liability. c.contra asset. d.surplus. e.revenue.
If credit side of a bank account is greater than debit side, it indicates: A. Bank overdraft B. Cash at bank C. Bank balance D. Current asset
A company repays its bank borrowings. The entry to record that transaction should be Group of answer choices A debit to bank borrowings and a credit to cash A debit to cash and a credit to bank borrowings.
The term ‘loanable funds' refers to: a. only those funds loaned by one bank to another bank. b. only those funds loaned to banks by the public. c. only those funds loaned to banks by the central bank. d. all those funds changing hands between the lenders and borrowers in the financial markets.
In a bank reconciliation, an EFT cash payment is A. added to the bank balance in the general ledger B. deducted from the bank balance on the bank statement C. added to the bank balance on the bank statement D. deducted from the bank balance in the general ledger
Which of the following transactions leaves a bank's total asset and liability unchanged? A bank receives deposits from a customer in the form of cash. O A bank writes off a bad loan it made to a local business. O A bank pays out cash to a customer who wants to withdraw money from his checking account. A bank makes a consumer loan with its cash reserves.
A loan received from a bank would be recorded in the nominal ledger as: a) Dr Bank Cr Capital b) Dr Loan Cr Bank c) Dr Bank Cr Reserves d) Dr Bank Cr Loan
Which one of the following statements is false?a. Consumer loans are loans banks advance to individuals.b. Loans are classed as liabilities on a bank’s balance sheet.c. Loans are classed as assets on a bank’s balance sheet.d. Deposits are classed as liabilities on a bank’s balance sheet.
1. Rank the following types of bank liabilities, first according to their level of liquidity risk, and then according to their interest rate risk. Then rank them according to their current cost to the bank. Explain why the rankings vary. DDAs Interest-checking accounts MMDAs Small-time deposits Jumbo CDs Federal funds purchased Eurodollar liabilities Federal Home Loan Bank advances
True (t) or False (f) ______ Savings accounts are usually classified as cash on the balance sheet.