If Trustus Bank Has a Reserve Ratio of 25 Per

question 64

Multiple Choice

If Trustus Bank has a reserve ratio of 25 per cent and keeps $100 in reserve, then Trustus's deposits are:

• A)$400
• B)$25
• C)$2500
• D)$5000

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Definitions:

Liquidation Proceeding

A legal process through which a business closes its operations and sells its assets to pay creditors.

Trustee

A person or organization that holds and manages assets on behalf of others, under a legal agreement.

Distribution

The process of giving out products or goods to the final consumer or distributor.

Chapter 7 Liquidation

A bankruptcy process where a debtor's assets are sold off to pay creditors, leading to the closure of the business.