Use the Balance Sheet for the Following Questions

question 233

Multiple Choice

Use the balance sheet for the following questions.
Table 29-3

-Refer to Table 29-3.If the Last Bank of Cedar Bend is holding $10,000 in excess reserves,then the reserve requirement is

• A)2 percent.
• B)5 percent.
• C)7 percent.
• D)10 percent.

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Definitions:

Value Added

The increase in worth of a product or service as a result of a particular process, excluding the cost of initial raw materials.

Intermediate Goods

Products used as inputs in the production of final goods, such as raw materials or components, not sold directly to end consumers.

Market Value

The prevailing rate at which a good or service is available for purchase or sale in the open market.

Real GDP

measures the value of all final goods and services produced within a country in a given period of time, adjusted for inflation.