Refer to the Accompanying Table

question 30

Multiple Choice

$$\begin{array} { | l | c | } \hline { \text { Type of Deposit } } & \text { Reserve Requirement } \\\hline \text { Checkable Deposits } & \\\hline \$ 7.8 \text { - 48.3 Million } & 3 \% \\\hline \text { Over \$48.3 Million } & 10 \\\hline \text { Noncheckable personal savings and time deposits } & 0 \\\hline\end{array}$$ Refer to the accompanying table. If a bank has $60 million in savings deposits and $40 million in checkable deposits, then its required reserves are

• A) $30 million.
• B) $3 million.
• C) $1.8 million.
• D) $1.2 million.

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Definitions:

Balanced Scorecard

A strategic planning and management system that is used to align business activities to the vision and strategy of the organization, improve internal and external communications, and monitor organization performance against strategic goals.

Organizational Performance

Refers to how well an organization is meeting its goals and objectives through the efficiency and effectiveness of its operations and resource use.

Customer Service

The assistance and support provided by a company to those people who buy or use its products or services.

Asset Turnover Ratio

A financial metric that measures the efficiency of a company in using its assets to generate sales or revenue.