Reducing Bank Reserves Would Be an Appropriate Measure

question 15

Multiple Choice

Reducing bank reserves would be an appropriate measure

• A) during a recession.
• B) to balance the government budget.
• C) to contain strong inflationary pressures.
• D) to promote an increased level of business borrowing.
• E) to increase the M1 money supply.

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Definitions:

Provision

A provision is an amount set aside in the financial statements to cover a future liability or loss.

Dollar Amount

A specific quantity of money expressed in the currency of the United States, represented by the dollar symbol ($).

IFRS

International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board (IASB) that is becoming the global standard for the preparation of public company financial statements.

U.S. GAAP

United States Generally Accepted Accounting Principles, the standard framework of guidelines for financial accounting used in the U.S.