Retained Earnings Result From

question 39

Multiple Choice

Retained earnings result from:

• A) the sale of additional shares of stock to investors.
• B) income not paid to shareholders.
• C) an excess of assets over liabilities.
• D) market values that exceed book values.

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Definitions:

Required Reserves

are the minimum amounts of funds that banks must hold in reserve against deposits, as mandated by central banks.

Federal Funds Target Rate

The interest rate at which banks and credit unions lend reserve balances to other depository institutions overnight, guided by the Federal Reserve.

Depository Institutions Deregulation

The process of removing or easing government regulations on banks and other depository institutions to enhance efficiency and competitiveness.

Money Creation

The process by which the money supply of a country is increased through activities primarily conducted by its central bank.