When Assessing Fair Value of Level 2 Assets,auditors Will Use

question 2

True/False

When assessing fair value of Level 2 assets,auditors will use information on the sale of identical items in active or inactive markets as a source of audit evidence.

---

Definitions:

Discount Rate

The interest rate charged to commercial banks and other depository institutions on loans they receive from their regional Federal Reserve Bank's lending facility.

Required Reserve Ratio

The fraction of deposits that a bank is required by regulation to hold in reserve, either in its own vaults or with a central bank, and not lend out.

Money Supply

The sum of physical currency, demand deposits, savings, and other liquid assets in a country's economy.

Fed

Known as the Federal Reserve System, the central bank of the United States oversees the nation's monetary policy.