$\text { Assets }\quad\quad\quad\quad\quad\quad\quad \text { Liabilities }$ -The Table Above Shows the Balance Sheet for Ralph?s Bank

question 429

Multiple Choice

$\text { Assets }\quad\quad\quad\quad\quad\quad\quad \text { Liabilities }$
$\begin{array}{|lc|lc|}\hline \text { Reserves } & \$ 500 &\text { Deposits }&\$5,000\\\text { Loans }&\$2,500\\\text { Total } & \$ 1,000&\text { Total }&\$3,000 \\\hline\end{array}$
-The table above shows the balance sheet for Ralph?s Bank. If the desired reserve ratio is 15 percent, Ralph?s Bank has excess reserves of ___________.

• A) $2,500
• B) $50
• C) $3,000
• D) $500

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Definitions:

Fiscal Period

A specific time period for which a business conducts financial accounting and reporting, often a year, split into quarters or months.

Accrued Expense

Expenses that have been incurred but not yet paid, recognized in the period they occur rather than when payment is made.

Computer Technician

A professional responsible for the maintenance, repair, and proper functioning of computer hardware and software.

Invoice

A document issued by a seller to a buyer, indicating the products or services provided and the amount due.