Prior to 2008,bank Managers Looked on Reserve Requirements

question 38

Multiple Choice

Prior to 2008,bank managers looked on reserve requirements

• A)as a tax on deposits.
• B)as a subsidy on deposits.
• C)as a subsidy on loans.
• D)as a tax on loans.

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Definitions:

Units-Of-Production Method

A depreciation method that allocates expenses based on the actual usage or production levels of an asset over its useful life.

Scrap Value

An asset's anticipated resale value once it has surpassed its period of utility.

Straight-Line Method

A method of calculating depreciation of an asset by evenly distributing its cost over the useful life of the asset.

Scrap Value

The estimated resale value of an asset at the end of its useful life, typically considered as salvage value.