-In the Balance Sheet for the FBN Bank Above, the Entries

question 252

Multiple Choice

-In the balance sheet for the FBN bank above, the entries are in millions of dollars. If the desired reserve ratio is 10 percent, FBN Bank can loan an additional

• A) $280 million.
• B) $200 million.
• C) $100 million.
• D) $360 million.

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Definitions:

Disclosed Principals

The concept in agency law where an agent's third party is aware of the identity of the principal, thus establishing contractual or legal relationships.

Scope of Employment

Refers to the range of activities and duties that an employee is expected to perform as part of their job.

Negligence

Behavior that creates an unreasonable risk of harm to others.

Liability

The state of being legally responsible for something, especially in terms of debts or legal obligations.