A Line-Item Budget Involves

question 12

Multiple Choice

A line-item budget involves

• A) the allocation of resources according to the degree to which organizational goals and objectives are met
• B) the allocation of resources according to the cost of each item
• C) the allocation of resources based upon operation and performance
• D) the allocation of resources based upon the periodic re-evaluation of all programs for which the agency is responsible

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Definitions:

Commercial Banks

Commercial banks are financial institutions that accept deposits, offer checking account services, and make loans to individuals and businesses.

Reserve Requirements

Regulations set by central banks determining the minimum amount of reserves that must be held by a commercial bank.

Checkable Deposit Liabilities

These are bank account deposits that are immediately available to make payments and transfers, typically seen in checking accounts.

Excess Reserves

Funds that banks hold over and above the required minimum reserves set by the central bank, available for lending or investment.