When $1 Million Is Deposited at a Bank,the Required Reserve

question 107

Multiple Choice

When $1 million is deposited at a bank,the required reserve ratio is 20 percent,and the bank chooses not to hold any excess reserves but makes loans instead,then,in the bank's final balance sheet

• A)the assets at the bank increase by $800,000.
• B)the liabilities of the bank increase by $1,000,000.
• C)the liabilities of the bank increase by $800,000.
• D)reserves increase by $160,000.

Understand the structure and function of the serous membranes.

Describe the major body cavities and their subdivisions.

Identify and describe the planes of the human body.

Understand the concept of homeostasis and its mechanisms.

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Definitions:

Capital Budgeting

Capital budgeting involves the process of analyzing and evaluating investment decisions in long-term assets to maximize an entity's value.

Straight-Line Depreciation

A method of allocating the cost of a tangible asset over its useful life in equal annual amounts, simplifying the accounting process.

Cash Flow

The total amount of money being transferred into and out of a business, particularly its liquidity level over a defined period.

Capital Budgeting

The process by which investors decide on the long-term investments of a company, such as new machinery, replacement machinery, new products, and research development projects.