Audit Documentation

question 13

Multiple Choice

Audit documentation:

• A)must be in electronic form.
• B)must be only in paper form.
• C)is not required, but is strongly recommended.
• D)may be in paper, electronic or some other form.

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Definitions:

Excess Reserves

Bank reserves that exceed the required minimum amount that financial institutions must hold in reserve against deposit liabilities.

Required Reserves

The minimum amount of reserves that a bank must hold as dictated by central banking regulations, typically a percentage of deposits.

Interest

The cost of borrowing money, typically expressed as a percentage of the amount borrowed, that lenders charge borrowers for the use of their funds.

Federal Reserve

The central banking system of the United States, responsible for setting monetary policy, regulating banks, maintaining financial stability, and providing banking services.