In Banking,the Spread Refers to the Difference Between the

question 16

Multiple Choice

In banking,the spread refers to the difference between the

• A) interest rate on long-term bonds and the interest rate on short-term bonds.
• B) interest rate on car loans and the interest rate on home mortgages.
• C) average interest rate earned on assets and the average interest rate paid on liabilities.
• D) bid and asked prices on a bond.

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Definitions:

Bank Statement Balance

The ending cash balance as recorded in the bank's records at the end of a reporting period.

Check Outstanding

A check that has been written and recorded in the issuing account but has not yet been cleared or cashed by the bank.

Bank Reconciliation

The process of comparing and adjusting the balance shown on a bank statement with the amount shown in a company’s records to ensure they match.

Internal Control

Procedures and policies implemented by a company to safeguard its assets, ensure accurate and reliable financial reporting, and comply with laws and regulations.