What Is the Name of the Account in Which Many

question 26

Multiple Choice

What is the name of the account in which many central banks require their banks to hold a percentage of the deposits as reserves at the central bank?

• A) retained earnings
• B) excess reserves
• C) margin account
• D) required reserves

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Definitions:

Full Payment

Completion of payment for a product or service in total, settling all owed amounts without remaining balances.

General Journal

A fundamental accounting ledger where all financial transactions are initially recorded, employing a double-entry system.

Sales Tax

A tax imposed by government on sales of goods and services, collected by the seller and passed on to the government.

Cash Customer

A customer who pays for goods or services with cash at the time of purchase rather than buying on credit.