Which of the Following Is a Potential Operating Instrument for the Central

question 84

Multiple Choice

Which of the following is a potential operating instrument for the central bank?

• A) Nonborrowed reserves
• B) The overnight funds rate
• C) The monetary base
• D) Each of the above

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Definitions:

Cash Recorded

The accounting entry that reflects the actual amount of cash received and recorded by a business during a specific period.

Revenue Journal

A revenue journal is a record used in accounting to keep track of the sales of goods and services that generate revenue for an entity.

Accounts Receivable

Funds that are due to a company from clients for products or services provided on credit.

Fees Earned

Revenue from providing services.