Which of the Following Is Not a Step in the Household

question 14

Multiple Choice

Which of the following is not a step in the household budgeting process?

• A)Compare budgeted with actual figures.
• B)Review results for reasonableness and finalize budget.
• C)Compare projected cash outflows with goals and adjust.
• D)Compute net cash flow.
• E)All of the above are steps in the household budgeting process.

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Definitions:

Reserves

Reserves refer to funds or other assets that banks or financial institutions hold to meet unexpected demands or regulatory requirements.

Required Reserve Ratio

A regulation set by central banks determining the minimum amount of reserves that banks must hold against deposits, affecting money supply.

Excess Reserves

The reserves that banks hold over and above the legal requirement; these are not loaned out and do not earn interest for the bank.

Required Reserves

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