The Replacement Value of the House Less Accumulated Depreciation (Which

question 60

Multiple Choice

The replacement value of the house less accumulated depreciation (which is the decline in value over time due to wear and tear) is known as

• A)actual cash value.
• B)replacement value.
• C)market value.
• D)depreciation.
• E)none of the above.

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Definitions:

Reserve Ratio

The portion of depositors' balances that banks must have on hand as cash, set by central banking authorities to ensure liquidity and stability in the banking system.

Additional Reserves

The excess funds that banks hold over the required minimum to meet reserve requirements set by a central bank.

Money

An economic unit that functions as a generally recognized medium of exchange for transactional purposes in an economy.

Reserve Requirement

The minimum amount of reserves that banks must hold, either in their vaults or with the central bank, as a proportion of deposits.