Table 9-6: Deposit Expansion Stages

question 1

Multiple Choice

Table 9-6: Deposit Expansion Stages
In Table 9-6, assume that banks loan out 100% of their excess banking reserves, there are no cash withdrawals, and all loan proceeds are spent. Figures have been rounded up to the nearest whole number.
-Refer to Table 9-6. What is the value of $D in Stage 4 (round up to the nearest whole number) ?

• A) $82
• B) $102
• C) $128
• D) $160

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Definitions:

Services Provided

The act or process of delivering professional, technical, or operational assistance to customers or clients.

Recorded

The act of entering financial transactions into the accounting records of a company.

Adjusted Trial Balance

A list of all accounts and their balances after adjustments are made, used to prepare financial statements.

Posting

The process of transferring journal entries to their respective accounts in the ledger, facilitating the organization and tracking of financial data.