In July of 1998 the lagged reserve accounting (LRA) system replaced a contemporaneous reserve accounting (CRA) system
Question:
a. Contrast a contemporaneous reserve accounting (CRA) system with a lagged reserve accounting (LRA) system.
b. Under which accounting system, CRA or LRA, are DI reserves higher? Why?
c. Under which accounting system, CRA or LRA, is DI uncertainty higher? Why?
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a Under LRA the DI holds reserves against the amount of deposits that had been in the DI 30 days pri...View the full answer
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Related Book For 
Financial Institutions Management A Risk Management Approach
ISBN: 978-0071051590
8th edition
Authors: Marcia Cornett, Patricia McGraw, Anthony Saunders
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