Generally, the Failure of Small Banks

question 59

Multiple Choice

Generally, the failure of small banks

• A) causes more widespread concern about the safety of the banking system than the failure of large banks.
• B) causes equal concern about the safety of the banking system as the failure of large banks.
• C) causes less concern about the safety of the banking system than the failure of large banks.
• D) Either A or B can be true, depending on the type of business cycle that exists while the failures occur.

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Definitions:

Journal Amounts

Journal amounts represent the values recorded in a financial journal, depicting transactions in monetary terms for accounting purposes.

Ledger Accounts

Records that summarize all transactions related to a specific account within an accounting system.

Posting

The process of recording financial transactions in the ledger from the journal in accounting.

Journalized Transactions

The formal recording of financial transactions in the accounting journals as part of the double-entry bookkeeping system.