The Open Market Committee of the Federal Reserve System Meets

question 52

True/False

The Open Market Committee of the Federal Reserve System meets regularly to determine the Required Reserve Ratio.

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Definitions:

Deposits In Transit

Funds that have been sent to a bank but not yet recorded by the bank in the account holder's bank statement.

Outstanding Checks

Checks that have been issued by a company but have not yet been cashed or cleared by the bank.

Petty Cash

A small amount of cash on hand used for minor or incidental expenses within a business.

Normal Balance

The side (debit or credit) of an account that is expected to have a greater balance based on standard accounting practices.