For the Following Seven Questions, Use the Following Bank Balance

question 8

Multiple Choice

For the following seven questions, use the following bank balance sheet. Values are millions of dollars.

-If $100 in transaction deposits were withdrawn and the bank called the minimum amount of loans to meet the reserve requirement, what is the value of the loans remaining on the balance sheet if there were no other changes?

• A) $400
• B) $500
• C) $520
• D) $540

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Definitions:

Inventory

The total amount of goods and materials held by a business for the purpose of resale or production.

CIF Agreements

Contracts that stipulate the seller is responsible for the cost, insurance, and freight of goods being transported to a designated location.

Risk Of Loss

The responsibility for the cost of loss or damage to goods during shipment, distribution, or within a contractual period.

Carrier

A carrier refers to an individual or entity engaged in the business of transporting goods or people for any form of compensation.