Revenues

question 40

Multiple Choice

Revenues

• A)are decreases in equity resulting from rendering services.
• B)are a cost of doing business.
• C)are called expired costs.
• D)are earned through the sale of goods,even though the cash may not be collected until later.

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Definitions:

Liquidity Trap

A condition where the effectiveness of monetary policy in spurring economic growth is diminished due to high rates of savings and low interest rates.

Reserve Requirement

Central bank regulations that set the minimum amount of reserves that must be held by a commercial bank, not to be loaned out or spent.

Time Deposits

Time Deposits are bank deposits with a fixed term or period of maturity, during which withdrawal entails a penalty, usually offering higher interest rates than savings accounts.

Original Maturities

The initial term agreed upon at the issuance of a financial instrument or loan, before any extensions or roll-overs.