When a Liability Is Incurred as Authorized by an Appropriation

question 115

Multiple Choice

When a liability is incurred as authorized by an appropriation, the appropriation is said to be:

• A) Encumbered
• B) Appropriated
• C) Expensed
• D) Expended

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Definitions:

Thrift Institutions

Savings and loan associations, mutual savings banks, and credit unions, primarily engaged in accepting savings deposits and making mortgage and other loans.

Government Securities

Financial instruments issued by the government to finance its expenditures, promising to pay back with interest.

Excess Reserves

Capital reserves held by banks that surpass the minimum reserve requirements, providing liquidity and stability to the banking system.

Money Supply

The total quantity of monetary assets available in an economy at a specific time, including notes, coins, and balances held in checking and savings accounts.