Given the Following Information About AAA Bank

question 84

Multiple Choice

Given the following information about AAA bank:
Bank Deposits $200,000
Loans 100,000
Required Reserves 40,000
Excess Reserves 60,000
What is the reserve ratio?

• A) 50 percent
• B) 40 percent
• C) 20 percent
• D) 10 percent

---

Definitions:

Payroll Taxes

Charges levied on both employers and employees, typically determined based on a percentage of what employers pay to their workers as wages.

Federal Income

Income subject to federal income tax, which includes earnings from various sources such as wages, interest, dividends, and capital gains, among others.

Current Liability

A company's debts or obligations that are due within one year or within the normal operating cycle.

Sales Tax

A tax levied by the government on the sale of goods and services.