Which of the Following Serves as the Central Banker for Private

question 10

Multiple Choice

Which of the following serves as the central banker for private banks in the United States?

• A)The 12 Federal Reserve banks.
• B)The executive branch of government.
• C)The legislative branch of the government.
• D)The Federal Open Market Committee.

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Definitions:

Prepaid Insurance

An asset account that reflects the amount of insurance premiums that have been paid in advance and are gradually recognized as an expense over the coverage period of the policy.

Adjusting Entry

A journal entry made in accounting records at the end of an accounting period to allocate income and expenditure to the period in which they actually occurred.

Year 1

Refers to the first year of operation for a business or the first year of a specific reporting period.

Contra-asset

A contra-asset account is a type of asset account where its balance is a negative figure that offsets the balance of its corresponding asset account.