G Was Injured in a Car Wreck

question 47

True/False

G was injured in a car wreck.He sued the driver of the other automobile and was awarded $10,000 for personal injury.In addition, he was awarded $3,000 as punitive damages.G must report $3,000 as income.

---

Definitions:

Required Reserve Ratio

The percentage of deposits that banks are legally required to keep on hand as reserves, not loaned out.

Excess Reserves

Excess reserves are the capital reserves held by banks beyond the required minimum, often placed with central banks, earning interest.

Money Supply

The total amount of monetary assets available in an economy at a specific time, which includes cash, coins, and balances held in checking and savings accounts.

Time Deposits

Time deposits are bank deposits with a fixed term or maturity date, where the depositor agrees not to withdraw the funds until that date, typically earning a higher rate of interest.