The Movement of Money or Other Resources from One Level

question 30

Multiple Choice

The movement of money or other resources from one level of government to another is known as

• A) own-source revenue.
• B) hard money.
• C) intergovernmental transfers.
• D) soft money.

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Definitions:

Banking System

The network of banks and financial institutions that provide banking services, including deposits, loans, and currency exchange.

Required Reserve Ratio

The minimum percentage of deposits that a bank must hold in reserve and not lend out.

Excess Reserves

Funds that banks hold over and above the required reserve ratio set by the central bank, often earning interest.

Checkable Deposits

Bank accounts from which individuals can deposit and withdraw money using checks, ATM transactions, and electronic payments.