Listed Below Are Five Terms Followed by a List of Phrases

question 111

Multiple Choice

Listed below are five terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the correct term.
-Restriction of retained earnings

• A)Similar to an S corporation, but no limit on number of owners.
• B)Net income as a percentage of average book value.
• C)Paid-in capital and/or retained earnings affected when sold.
• D)Preferred practice is to disclose in the notes to the financial statements.
• E)Used in evaluating stock performance.

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Definitions:

M3

M3 is a measure of the money supply that includes M2 (cash, checking deposits, and easily convertible near money) plus large time deposits, institutional money market funds, and larger liquid assets.

Reserve Ratio

A regulation set by central banks determining the minimum amount of reserves that must be held by a commercial bank, expressed as a percentage of the bank's total deposits.

Money Supply

The complete collection of monetary funds in an economy, including cash, coins, and the balances in checking and savings accounts, at a given moment.

Gold Coins

Coins made primarily or entirely of gold and used historically as currency, and today often collected as investments or keepsakes.