A Checkable and Debitable Account Is

question 256

Multiple Choice

A checkable and debitable account is

• A) a liability to a commercial bank.
• B) an asset to a commercial bank.
• C) a liability to the household or firm that has the account.
• D) an asset for the Federal Reserve System.

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Definitions:

Return on Investment

A financial ratio used to evaluate the efficiency or profitability of an investment, calculated by dividing net profit by the cost of the investment.

Minimum Return on Investment

The lowest acceptable return on an investment, below which investments are considered unprofitable or not worth pursuing.

Profit Margin

A financial metric used to evaluate a company's financial health by revealing the percentage of revenue that exceeds the costs involved in making sales.

Return on Investment

A measure used to evaluate the efficiency or profitability of an investment, calculated as the net profit from the investment divided by its cost.