The Following Question Are Based on the Following Changes in the Balance

question 78

Multiple Choice

The following question are based on the following changes in the balance sheet of Nowhere National Bank.

-What was the bank's required ratio of reserves to deposits?

• A) 10 percent
• B) 15 percent
• C) 16.67 percent
• D) 20 percent
• E) 25 percent

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Definitions:

Par Value

Par value is the face value of a bond or the stock value stated in the corporate charter, below which shares cannot be issued.

Stock Dividend

A distribution of additional shares of a company's stock to its shareholders instead of paying a cash dividend.

Stockholders' Equity

Stockholders' equity represents the ownership interest of shareholders in the corporation, calculated as total assets minus total liabilities.

Liabilities

Financial obligations or debts that a company owes to external parties.