Table 9-3 Balance Sheet of the Alpha-Beta Bank

question 193

Multiple Choice

Table 9-3
Balance Sheet of the Alpha-Beta Bank
(All figures in $ million)

-Refer to Table 9-3. If the required reserve ratio is 10%, what is the maximum amount of new loans that Alpha-Beta can create?

• A) $25 million
• B) $40 million
• C) $60 million
• D) $75 million

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ULPA

Ultra-Low Penetration Air (ULPA) filters are highly efficient filtration systems capable of removing airborne contaminants with a very high degree of efficiency.

RULLCA

The Revised Uniform Limited Liability Company Act that governs the formation, operation, and dissolution of LLCs in states that have adopted it.

Merge

The combination of two or more entities into a single entity, in which one entity absorbs the others and their assets and liabilities.

Apparent Authority

A situation where a reasonable person would understand that an agent had authority to act, even if the agent did not have actual authority.