-Refer to Table 13

question 5

Multiple Choice

-Refer to Table 13.1.With a required reserve ratio of 12 percent,XYZ Bank would have excess reserves of

• A)$100,000.
• B)$48,000.
• C)$52,000.
• D)$12,000.

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Definitions:

Departmental Operating Margin

A measure of the profitability of individual departments within a business, calculated as the difference between departmental revenue and expenses.

Operating Expenses

Costs incurred in the normal operation of a business, excluding the cost of goods sold.

Direct Expenses

Expenses that can be traced directly to a specific department.

Specific Department

A designated segment within an organization focused on a particular area of activity or operations.