checks and balances

Examples of checks and balances in the following topics:

• Checking the Power of the Governing Party

  • The legislative branch can significantly affect the power of the governing party by employing a series of checks and balances.
  • The Democratic and Republican Parties can check the power of the governing party by holding seats in the legislative branch of the government.
  • The legislative branch can also check the governing party by starting investigations against the executive branch.
  • While the checks and balances system between the executive, legislative, and judicial branches prevents any one branch from becoming tyrannical, this system has also been criticized for maintaining the status quo in government rather than promoting changes.
  • Describe the relationship between the political parties and a system of checks and balances

• Vertical Checks and Balances

  • Checks and balances is a governmental structure that gives each of the branches a degree of control over the actions of the other.
  • To prevent one branch of government from becoming supreme, to protect the minority from the majority, and to induce the branches to cooperate, government systems employ a separation of powers in order to balance each of the branches.
  • This is accomplished through a system of checks and balances which allows one branch to limit another, such as the power of Congress to alter the composition and jurisdiction of the federal courts.
  • The Constitution and its amendments outline distinct powers and tasks for national and state governments.
  • Congress oversees, investigates, and makes the rules for the government and its officers.

• Checks and Balances

  • To get the three branches of government to cooperate, a system of checks and balances was created to achieve a fair separation of powers.
  • To prevent one branch of government from becoming too powerful, protect the minority from the majority, and induce the branches to cooperate, governments often employ a system of "checks and balances. " Like the concept of separation of powers, this idea is credited to Montesquieu.
  • Through this system, each branch of government "checks," or limits, the other two so that the power shared between them is balanced.
  • The legislative branch of the United States checks and monitors the executive and judicial branches.
  • Discuss the details of the Constitution's system of checks and balances

• The Post-Closing Trial Balance

  • A post-closing trial balance is a trial balance taken after the closing entries have been posted.
  • The permanent balance sheet accounts will appear on the post-closing trial balance with their balances.
  • While each accounting period has a beginning and an end, the periods do use information from the previous period.
  • The preparation of a post-closing trial balance serves as a check on the accuracy of the closing process and ensures that the books are in balance at the start of the new accounting period.
  • The post-closing trial balance differs from the adjusted trial balance in only two important respects: It excludes all temporary accounts since they have been closed, and it updates the retained earnings account to its proper ending balance.

• Electronic Banking

  • You can use them to make a withdrawal, make a deposit, make a loan payment, transfer money from one account to another, or check your account balance.
  • Direct deposit is popular among people who receive Social Security checks or pension checks because it saves them the trouble of travelling to the bank to deposit them in person.
  • It's secure, fast, and easy to use.
  • Online banking allows you to check your balance, pay your bills, view statements, transfer funds, view transaction history, and much more.
  • You can use them to make a withdrawal, make a deposit, make a loan payment, transfer money from one account to another, or check your account balance.

• Forms of Money

  • Banks, credit unions, and other financial institutions offer checking accounts to people and businesses.
  • Then people use checks as a medium of exchange, allowing them to purchase goods and services.
  • First, the financial institution charges fees for using checks, or the check writers abuse their accounts and write fraudulent checks for amounts that exceed their account balances.
  • Some businesses and people do not accept checks because they cannot verify if a person has sufficient funds in his account.
  • A debit card improves the payments system's efficiency and extends the function of checks.

• Balance Sheets

  • A standard balance sheet has three parts: assets, liabilities, and ownership equity; Asset = Liabilities + Equity.
  • A standard company balance sheet has three parts: assets, liabilities, and ownership equity.
  • Individuals and small businesses tend to have simple balance sheets.
  • A personal balance sheet lists current assets, such as cash in checking accounts and savings accounts; long-term assets, such as common stock and real estate; current liabilities, such as loan debt and mortgage debt due; or long-term liabilities, such as mortgage and other loan debt.
  • Balance sheet account names and usage depend on the organization's country and the type of organization.

• The Trial Balance

  • The trial balance tests the equality of a company's debits and credits.
  • It lists all of the ledger, both general journal and special, accounts and their debit or credit balances to determine that debits equal credits in the recording process .
  • This error must be found before a profit and loss statement and balance sheet can be produced.
  • The trial balance is a part of the double-entry bookkeeping system and uses the classic 'T' account format for presenting values.
  • A trial balance only checks the sum of debits against the sum of credits.

• The Fed as a Check Clearer

  • The Fed created a nationwide check-clearing system that provided an efficient and stable way of transferring funds between institutions.
  • Person A writes a check for $10 and gives it to Person B, who brings it to his banking institution.
  • If there are sufficient funds in Person A's account, the face value of the check ($10 in this case) then moves from A to B, resulting in a debit of $10 to Person A and a credit of $10 to Person B.
  • Check clearing is defined as "the movement of a check from the depository institution at which it was deposited back to the institution on which it was written, the movement of funds in the opposite direction, and the corresponding credit and debit to the accounts involved.
  • Check clearing also encompasses the return of a check (for insufficient funds, for example) from the bank on which it was written to the bank at which it was deposited, and the corresponding movement of funds. "

• Measuring the Money Supply: M1

  • A broader measure of money than M1 includes not only all of the spendable balances in M1, but certain additional assets termed "near monies".
  • Near monies cannot be spent as readily as currency or checking account money, but they can be turned into spendable balances with very little effort or cost.
  • The total M1 money supply didn't change; it includes the $400 check and the $500 left in the checking account (M1=$1,710).
  • M1 and her checking account do not change, because the check is never cashed (M1=$1,710).
  • Mandy's bank now lends the money to someone else who deposits it in a checking account at another bank, and the process repeats itself.