Why Do Banks Prefer a Lagged Reserve Accounting System to a Contemporaneous

question 16

Short Answer

Why do banks prefer a lagged reserve accounting system to a contemporaneous reserve accounting system?

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Definitions:

Paid Absences

Compensation provided to employees for days not worked, such as holidays, vacations, or sick days.

Expense Account

An account that records the costs incurred by a company in the process of earning revenue.

Payable Account

An accounting record that shows the total amount of money owed to creditors for goods, services, or loans provided.

Employee Health Insurance

An insurance coverage that provides benefit payments for healthcare services to employees, often paid for wholly or in part by employers.