In September 2012 the Fed Announced That Because of Weak

question 25

Multiple Choice

In September 2012 the Fed announced that because of weak labor market conditions, it would ________ $40 billion of mortgage backed securities per month. Critics of the action said that banks have ________ excessive reserves so the action would be futile.

• A) sell; huge amounts of
• B) buy; huge amounts of
• C) buy; very little
• D) sell; very little

Classify and report cash and cash equivalents in financial statements according to U.S. GAAP and IFRS.

Understand the principles of recording transactions affecting cash and receivables.

Prepare and interpret a balance sheet segment related to receivables.

Identify and explain differences between IFRS and GAAP in accounting for cash and receivables.

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Definitions:

Perceptual Processing

The act of receiving, organizing, and interpreting sensory information from the environment.

Uniform Parts

Elements or components that are identical in form or function within a larger system or group.

Reversible

Capable of being turned back to the previous state or condition without causing permanent change or damage.

Figure-Ground Patterns

The organization of visual fields into objects (the figures) that stand out from their surroundings (the ground).