$\text { Assets }\quad\quad\quad\quad\quad\quad\quad \text { Liabilities }$ -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:

Accounts Receivable-Redding

Accounts receivable specifically related to the Redding location or branch, indicating money owed by customers for goods or services delivered.

$8,300 Balance

A specific amount, often referring to the closing or remaining value in a particular account at a given moment.

Promissory Note

A monetary tool that involves a formal pledge from one entity to another to pay a specific amount of cash, either upon request or at an agreed-upon date in the future.

Maturity

The date on which a financial obligation, such as a loan or bond, is due to be repaid in full.