A Bank's Reserves Include

question 65

Multiple Choice

A bank's reserves include

• A) the cash in its vault plus the value of its depositors' accounts.
• B) the cash in its vault plus its deposits held at a Federal Reserve bank.
• C) the cash in its vault plus any gold held for the bank at Fort Knox.
• D) its common stock holdings, the cash in its vault, and any deposits at a Federal Reserve bank.

Understand the concept of operating income and how to calculate it.

Comprehend the sequence of major activities in an organization and how they contribute to business operations.

Identify and calculate cost of goods sold (COGS) in manufacturing.

Differentiate between various types of costs (fixed, variable, product, period) and their relevance to accounting and decision making.

---

Definitions:

SEC

The U.S. Securities and Exchange Commission, a federal agency responsible for enforcing federal securities laws and regulating the securities industry and stock and options exchanges.

Letter of Comments

A document often issued by auditors or regulatory bodies outlining concerns, observations, or requests for clarification on specific points in a financial report or audit.

SEC

The United States Securities and Exchange Commission is a federal body tasked with the enforcement of federal securities legislation and the regulation of the securities sector.

Incorporation by Reference

A method that allows a document to be legally part of another document by referencing it, instead of including the entire text of the referenced document.