A Cost That Requires a Future Cash Disbursement

question 73

Short Answer

A cost that requires a future cash disbursement

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Definitions:

Goldsmiths

Historically, craftsmen who made objects out of gold, but in financial history, they are known for keeping gold deposits and issuing paper bank notes redeemable for gold.

Medium Of Exchange

An intermediary instrument or system used to facilitate the sale, purchase, or trade of goods and services between parties.

Reserve Ratio

The portion of depositors' balances that banks must have on hand as cash, a regulatory requirement meant to ensure bank stability and liquidity.

Total Deposits

The sum of all money that is deposited in a bank's accounts by its customers.