The Target for Settlement Balances Is Set at ________

question 100

Multiple Choice

The target for settlement balances is set at ________.

• A) zero with no adjustments for any pressures on the overnight rate
• B) zero but the Bank makes adjustments depending on pressures on the overnight rate
• C) zero but the Bank makes adjustments depending on pressures on the prime rate
• D) always positive with no adjustments

---

Definitions:

Dividends

Earnings distributed to shareholders, typically in the form of cash or additional shares, from a company's profits.

Common Stockholders

Individuals or entities that own shares of common stock in a corporation, giving them rights to dividends and voting in shareholder meetings.

General Journal

A ledger in accounting that records all day-to-day financial transactions of a company.

Accounts Receivable

Funds due to a company from its clients for products or services provided on credit.