The Ratio of a Bank's Total Reserves to Its Total

question 90

Multiple Choice

The ratio of a bank's total reserves to its total transactions deposits is known as the

• A)Required reserves.
• B)Reserve ratio.
• C)Excess reserves.
• D)Deposit ratio.

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Definitions:

Control Account

An account in the general ledger used to simplify the recording of transactions and track the total amounts for financial statement purposes, often summarizing the details that are held in a subsidiary ledger.

Special Journals

Accounting books or ledgers used for recording and categorizing specific types of transactions such as sales, purchases, cash disbursements, and cash receipts in a more efficient manner.

Merchandise Purchase

Transactions involving the buying of goods for resale in the normal course of business.

Cash Payments Journal

A financial journal that records all cash payments made by a business, including expenses, asset purchases, and debt payments.