Suppose Total Deposits in the First Bank of Commerce Are

question 208

Multiple Choice

Suppose total deposits in the First Bank of Commerce are $100,000 and required reserves are $10,000. Based on this information, the required reserve ratio is:

• A)0.10.
• B)0.9.
• C)1.0.
• D)10.0.

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Definitions:

Composition Agreement

An arrangement between a debtor and their creditors in which the creditors agree to accept a partial payment in satisfaction of the debts owed.

Creditors

Creditors are individuals or entities that are owed money by another entity or individual, known as a debtor.

Debtor

A person, company, or country that owes money.

Surety

A surety involves a third party agreeing to take on the obligation of paying back a debt or performing a duty if the primary obligor fails to do so.