It Is Extremely Difficult to Estimate the Revenues and Costs

question 179

True/False

It is extremely difficult to estimate the revenues and costs associated with large complex projects that take several years to develop.This is why subjective judgment is recommended for such projects instead of cash flow analysis.

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Definitions:

Excess Reserves

The amount of reserves that a bank holds beyond the required minimum, often held in the central bank to lend to other banks or as currency in circulation.

Required Reserves

The minimum amount of funds that a bank is required to hold in reserve against deposits, as mandated by central banking regulations.

Demand Deposits

Bank accounts that allow the holder to withdraw funds without prior notice, such as checking accounts.

Time Deposits

Savings accounts or certificates of deposit that hold a fixed sum of money for a specified period of time, during which the depositor cannot withdraw the funds without penalty.