A Bankʹs Reserves Include

question 578

Multiple Choice

A bankʹs reserves include

• A) its common stock holdings, the cash in its vault, and any deposits at a Federal Reserve bank.
• B) the cash in its vault plus its deposits held at a Federal Reserve bank.
• C) the cash in its vault plus any gold held for the bank at Fort Knox.
• D) the cash in its vault plus the value of its depositorsʹ accounts.

Calculate the inventory turnover rate.

Compute the rate of return on investment (ROI).

Calculate the acid test ratio.

Compute the ratio of accounts receivable to net sales.

---

Definitions:

Substitutes

Products or services that can serve as replacements for each other, fulfilling the same need or desire.

Market Segments

Groups of potential customers with similar needs, wants, and characteristics that a company targets with its products or services.

Deep Discounts

Significant reductions in price offered to consumers, often to clear inventory or boost sales temporarily.

Monopolist

A single supplier in a market who has exclusive control over a product or service, often resulting in limited competition.