Examples of Classification of Expenses by Their Nature Are

question 62

Multiple Choice

Examples of classification of expenses by their nature are:

• A) employee expenses and distribution expenses.
• B) depreciation and marketing expenses.
• C) borrowing costs and distribution expenses.
• D) employee expenses and depreciation expenses.

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Definitions:

Reserve Requirement Ratio

The fraction of deposits that banks are required to keep on hand, either in cash or as deposits at a central bank, as a measure to ensure bank liquidity.

Required Reserves

The minimum amount of funds that a bank must hold in reserve against deposits, as mandated by regulatory authorities.

Total Checkable Deposits

represents the sum of all demand deposits and negotiable order of withdrawal (NOW) accounts in the banking system, which are available for immediate withdrawal and payment.

Depository Institutions Deregulation and Monetary Control Act

A United States federal law enacted in 1980 aimed at improving the efficiency of the financial institutions system and enhancing the control of the money supply.