The Following Balance Sheet Is for the First National Bank

question 167

Multiple Choice

The following balance sheet is for the First National Bank.Assume the desired reserve ratio is 15 percent. Refer to the above data.If a cheque for $20,000 is drawn and cleared against this bank, it will have excess reserves of:

• A)$15,000
• B)$20,000
• C)$25,000
• D)$30,000

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Definitions:

Credential Inflation

The increasing demand for higher educational qualifications for jobs that previously required lower levels of education.

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Speculations or theories concerning the evolution, role, and function of religion in future societies and cultures.

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A theory that predicts religion would diminish in importance and influence due to modernization and rationalization.