A Bank That Has Assets of $85 Billion and a Net

question 106

Multiple Choice

A bank that has assets of $85 billion and a net worth of $10 billion must have

• A) liabilities of $75 billion.
• B) excess reserves of $10 billion.
• C) liabilities of $10 billion.
• D) excess reserves of $75 billion.

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Definitions:

Demand An Accounting

A legal request for a detailed report of financial transactions and balances, typically made by stakeholders to ensure transparency.

Forensic Auditor

A professional who examines financial records to detect or investigate fraud, ensuring legal compliance and integrity.

Commissions

Earnings based on a percentage of the sale price of goods or services, typically used as compensation for sales personnel.

Implied Authority

Authority of an agent that is not explicitly granted but rather inferred from the nature of the job or previous conduct between the agent and the principal.