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NEW QUESTION: 1
James Morrison is a profit-seeking banker. His bank has $25 million in excess reserves. Mr. Morrison
A. can probably increase his profits by reducing his excess reserves.
B. cannot change excess reserves held by his bank because this level is set and strictly enforced by the
Fed.
C. can probably increase his profits by increasing his excess reserves.
Answer: A
Explanation:
A bank holding excess reserves can increase its profits by extending more loans and holding fewer excess reserves. This is because the excess reserves held by the bank do not earn any interest.
However, excess reserves extended as loans earn a positive interest rate and therefore will allow the bank to make a positive profit. Excess reserves represent the portion of reserves held by the bank in excess of the required reserve ratio set by the Fed.

NEW QUESTION: 2
Which of the following will BEST protect an organization from internal security attacks?
A. Prospective employee background checks
B. Employee awareness certification program
C. Internal address translation
D. Static IP addressing
Answer: A
Explanation:
Explanation
Because past performance is a strong predictor of future performance, background checks of prospective employees best prevents attacks from originating within an organization. Static IP addressing does little to prevent an internal attack. Internal address translation using non-routable addresses is useful against external attacks but not against internal attacks. Employees who certify that they have read security policies are desirable, but this does not guarantee that the employees behave honestly.

NEW QUESTION: 3
Which statement is true regarding reversing an invoice?
A. A three way match invoice can be reversed creating a return transaction.
B. An invoice can be reversed creating a return transaction.
C. The original invoice can be replaced by reversing it.
D. An invoice can be reversed by creating a return receipt.
Answer: C