Exhibit 22-1 -The Data in Exhibit 22-1 Shows the Balance Sheet (In

question 17

Multiple Choice

Exhibit 22-1
-The data in Exhibit 22-1 shows the balance sheet (in millions of dollars) for Bank INF. Assuming the bank's reserves are what is required by law, the required reserve ratio is

• A)85 percent.
• B)15 percent.
• C)70 percent.
• D)30 percent.
• E)5 percent.

---

Definitions:

Equity-Financed

A method of funding a company's operations by issuing shares to investors, rather than taking on debt.

Incremental Value

The additional value generated by undertaking a specific action or investment compared to not doing so.

Shares Outstanding

The total number of shares of a company's stock that are currently owned by all its shareholders, including share blocks held by institutional investors and restricted shares.

Equity-Financed

A method of funding a company’s operations by issuing shares of stock to investors rather than borrowing money.