The Fed's Support of the Depository Institutions Deregulation and Monetary

question 32

Multiple Choice

The Fed's support of the Depository Institutions Deregulation and Monetary Control Act of 1980 stemmed in part from its

• A) concern over declining Fed membership.
• B) belief that all banking regulations should be eliminated.
• C) belief that interest rate ceilings were too low.
• D) belief that depositors had to become more knowledgeable about banking operations.

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Definitions:

Aging

The process of categorizing accounts receivables based on the length of time an invoice has been outstanding to determine their collectability.

Accounts Receivable

An asset account representing money owed to a business by its customers for goods or services delivered on credit.

Allowance for Doubtful Accounts

A contra-account reducing accounts receivable to reflect the estimated portion that may not be collected.

Uncollectibles

Debts owed to a company that are considered unlikely to be paid and are therefore written off as a loss.