A Phone Bill That Totals $ 113 Is Received in Manitoba

question 8

Multiple Choice

A phone bill that totals $ 113 is received in Manitoba, a province that has both GST and PST. The amount that would appear as the expense would be

• A) $ 113.
• B) $ 100.
• C) $ 108.
• D) $ 105.

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Definitions:

Fed

Known as the Federal Reserve System, the central bank of the United States oversees the nation's monetary policy.

Depository Institution

A financial institution legally allowed to accept monetary deposits from consumers, such as banks and credit unions.

Required Reserve Ratio

The fraction of deposits that banks are required to hold in reserve, either in their vaults or at the central bank, to ensure that they can meet withdrawal demands.

Simple Money Multiplier

A formula that estimates the maximum amount of money that banking can generate with each dollar of reserves.