If Excess Reserves Are $10,000,demand Deposits Are $100,000,and the Required

question 115

Multiple Choice

If excess reserves are $10,000,demand deposits are $100,000,and the required reserve ratio is 10 percent,then total reserves are

• A)$0.
• B)$20,000.
• C)$10,000.
• D)$110,000.

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Definitions:

Capital Structure

The mix of a company's long-term debt, specific short-term debt, common equity, and preferred equity that it uses to finance its overall operations.

Current Assets

Current Assets are all assets of a company that are expected to be sold, used, or consumed within one year in the normal course of business.

Cash Budget

A financial plan that estimates cash inflows and outflows over a specific period, often used for managing liquidity and ensuring a company can meet its short-term obligations.

Budgeted Monthly Sales

An estimation of the sales revenue that a business expects to achieve in a particular month.