Refer to the Information Below

question 176

Multiple Choice

Refer to the information below.When the desired reserve ratio is 10 percent, the money creating potential of this single bank is:

• A)zero dollars.
• B)$6,000
• C)$30,000
• D)$60,000

---

Definitions:

Process Costing System

An accounting method used to assign costs to units of production in continuous processes, where similar items are produced.

Weighted-Average Method

An inventory costing method that assigns the cost of goods available for sale based on the weighted average cost of those goods during the period.

Processing Department

A processing department is a division within a manufacturing operation where a specific type of process or series of operations is performed on products.

Cost System

A method or process used by a company to capture, measure, and allocate costs to products, services, or other cost objects.