The ?Gures in the Table Are for a Single Commercial

question 20

Multiple Choice

$$\begin{array} { | l | r | l | l | } \hline & & \text { Assets } & \text { Liabilities and Net Worth } \\\hline \text { Stock Shares } & \$ 400 & & \\\hline \text { Reserves } & 40 & & \\\hline \text { Property } & 300 & & \\\hline \text { Securities } & 160 & & \\\hline \text { Loans } & 80 & & \\\hline \text { Demand Deposits } & 180 & & \\\hline\end{array}$$ The ?gures in the table are for a single commercial bank, Bank A. All ?gures are in thousands of dollars. If the reserve ratio is 10 percent and a check for $10,000 is drawn and cleared in favor of Bank B, then Bank A will end
Up with excess reserves of

• A) $8,000.
• B) $12,000.
• C) $13,000.
• D) $18,000.

---

Definitions:

Balance Sheet

A financial statement that presents a company's assets, liabilities, and shareholders' equity at a specific point in time.

Accounts Receivable

Money owed to a company by its customers for goods or services delivered or used but not yet paid for.

Fees Earned

Income generated from services provided, recognized in the period in which the services are rendered.

Billed

Issuing an invoice to customers for goods sold or services provided, indicating the amount they owe the business.