If a Bank Has a Total of $80,000 in Deposits

question 113

Multiple Choice

If a bank has a total of $80,000 in deposits and has made three loans in the amounts of $10,000, $20,000, and $30,000, what is this bank's reserve ratio (assuming it has no other deposits or made any other loans) ?

• A) 20%
• B) 25%
• C) 60%
• D) 75%

Analyze the management of cultural differences in a global business context.

Identify and classify different types of accounts (assets, liabilities, owner's equity, expenses, revenues).

Understand the rules of debit and credit in relation to account balances.

Recognize the normal balance (debit or credit) for various account types.

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Definitions:

Soft Rationing

A situation where a company limits the amount of funding or capital it allocates to new or ongoing projects, often due to internal policy decisions.

Financial Stop-loss

A risk management strategy used to limit or reduce losses in various financial transactions, typically by setting a predetermined exit point for an investment.

Simulation

A method or process for imitating the operation of real-world systems or processes, using models for training, analysis, or prediction.

Scenario Analysis

An approach to study what might happen in the future by looking at various potential outcomes or situations.