An Employee Authorized to Sign Checks Should Not Record

question 55

Multiple Choice

An employee authorized to sign checks should not record

• A) owner cash contributions.
• B) mail receipts.
• C) cash disbursement transactions.
• D) sales transactions.

Identify examples of specific defense mechanisms in daily life situations.

Distinguish between different defense mechanisms such as displacement, regression, and projection.

Recognize the role of denial in avoiding reality.

Identify the psychological response to stress or threat in terms of defense mechanisms.

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Definitions:

Deposits

Funds placed into an account at a banking institution for safekeeping and possible interest accrual.

Reserves

Reserves refer to funds or other assets that banks or financial institutions hold to meet unexpected demands or regulatory requirements.

Required Reserve Ratio

A regulation set by central banks determining the minimum amount of reserves that banks must hold against deposits, affecting money supply.

Excess Reserves

The reserves that banks hold over and above the legal requirement; these are not loaned out and do not earn interest for the bank.