The Principles of Internal Control Activities Are Used

question 196

Multiple Choice

The principles of internal control activities are used

• A) in the U.S. but not globally.
• B) internationally but not in the U.S.
• C) in the U.S. and Canada but not globally.
• D) globally.

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Definitions:

Discount Rates

Discount rates refer to the interest rate charged to commercial banks and other financial institutions for loans received from the central bank's discount window.

Federal Funds Rate

The interest rate banks and other depository institutions charge one another on overnight loans made out of their excess reserves.

Borrowed Reserves

Funds that commercial banks borrow from the central bank to meet reserve requirements, often indicative of a tight monetary policy.

Fed

The Federal Reserve System, which is the central bank of the United States responsible for monetary policy.