The Following Question Refer to the Table That Follows

question 51

Multiple Choice

The following question refer to the table that follows. Assume that there is a fractional-reserve banking system, that the legal reserve requirements are 10 percent, and that the balance sheet for Bank X is as follows:

-Bank X has legal reserve requirements of

• A) $3,000,000.
• B) $2,000,000.
• C) $1,667,000.
• D) $1,000,000.
• E) $0.

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Definitions:

Battle of the Forms

A legal concept involving conflicts between differing terms in contracts, typically in commercial transactions.

Acceptance

In contract law, acceptance refers to the agreement by the party to whom an offer has been made to the terms of the offer, resulting in a legally binding contract.

Mailbox Rule

A legal doctrine stating that an offer is considered accepted at the time the acceptance is sent via the mail or other delivery method.

Risk

In law and business, risk refers to the exposure to potential loss or damage arising from various factors like legal liabilities or financial transactions.