Any Amount That a Bank Chooses to Keep on Hand

question 47

Multiple Choice

Any amount that a bank chooses to keep on hand beyond what it is required to is called:

• A) excess reserves.
• B) excess deposits.
• C) federal funds.
• D) extra holdings.

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Definitions:

Effective Tax Rate

The average rate at which an individual or corporation is taxed, calculated by dividing total tax paid by the taxable income.

Taxable Income

The amount of an individual's or organization's income used to determine how much tax is owed, minus deductions and exemptions.

Federal Taxes

Taxes imposed by the federal government on income, property, and consumption to fund national programs and services.

Gross Income

The total earnings received before any deductions such as taxes, benefits, and expenses.