Accounting and Finance Questions

Standard deviation measures total risk in stocks.

Transfer payments are included in GDP and not in GDP.

The balance of an account is determined by the difference of credits amount and debits amount in the sheet.

Fractional reserve banking is the practice whereby a bank accepts deposits, makes loans or investments, but is required to hold reserves equal to only a fraction of its deposit liabilities. Fractional reserve banking is a banking system in which only a fraction of bank deposits are backed by actual cash on hand and are available for withdrawal. This is done to expand the economy by freeing up capital that can be loaned out to other parties.