The Treasury Usually Requires Most Businesses to Regularly Deposit Taxes

question 104

Essay

The Treasury usually requires most businesses to regularly deposit taxes withheld from employees into accounts at designated commercial banks. On a regular basis, the funds in these accounts are transferred to the Treasury's account at the Fed. Discuss what is happening to the balance sheet of the banking system as the businesses are making deposits and these tax accounts are increasing. What happens to the banking system's balance sheet when the funds are transferred to the Fed?

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Definitions:

After Update

"After Update" is an event in various programming and database environments that triggers after an existing record or piece of data has been modified.

Before Delete

A condition or state referring to the moment or action before an item or data is permanently removed.

After Insert

In database management, After Insert refers to a trigger that is executed automatically after a new record is inserted into a database table.

Debug

The process of finding and resolving defects or problems within a computer program that prevent correct operation.