Use the Following to Answer Questions

question 143

Multiple Choice

Use the following to answer questions.
Exhibit: Acme Bank: Partial Balance Sheet

-(Exhibit: Acme Bank: Partial Balance Sheet) Assume Acme Bank initially has no excess reserves. If Guevara withdraws $6,000 from her checking account at Acme Bank, which of the following will occur?

• A) Acme's excess reserves are reduced by $6,000.
• B) Acme will have excess reserves of $2,000.
• C) Acme will have a required reserve deficiency of $3,000.
• D) Acme will have a required reserve deficiency of $5, 400.

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Definitions:

Implied Warranty

A legal term for the unspoken and unwritten guarantees that the law assumes goods or services must meet.

Trade Custom

Established practices and patterns of behavior that are widely accepted within a particular industry.

Contract

A contract between two or more entities that is recognized by law and entails shared responsibilities.

Merchantable

A term that describes goods of a quality that are fit for sale or suitable for a particular purpose.