If a Bank Has Required Reserves of $27,000,000,excess Reserves of $41,000,000,and

question 141

Multiple Choice

If a bank has required reserves of $27,000,000,excess reserves of $41,000,000,and deposits of $90,000,000 with a required reserve ratio of 30 percent,how much can the bank lend out?

• A) $8,100,000
• B) $27,000,000
• C) $41,000,000
• D) $90,000,000
• E) $117,000,000

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Definitions:

Composite Unit

A composite unit is an accounting measurement that combines the attributes of multiple units of a similar product or service into a single representation for easier management or evaluation.

Sales Mix

The proportion of different products or services that make up a company's total sales, affecting overall profitability and performance.

Variable Costs

Costs that vary directly with the level of output or production activity, such as raw materials and direct labor expenses.

Break-Even Point

The point at which total costs equal total revenue, meaning there is no net loss or gain.