Answered: balance-sheet mismatch that financial…

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Accounting

balance-sheet mismatch that financial intermediaries

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter6: Bank Accounts, Cash Funds, And Internal Controls

Section: Chapter Questions

Problem 3QY: Which of the following does not explain the differences between the bank statement balance and the...

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Concept explainers

Bank Reconciliation Statement

As a commerce student, we all know that every business has to maintain a cash book to maintain all his cash and bank transactions. A cash book is a book which has two columns, one cash column and one bank column.

Question

What is the balance-sheet mismatch that financial intermediaries have that makes them subject to financial panics and runs when depositors attempt to withdraw their funds?

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