Banks Keep ________ of Checking Deposits as Reserves Because on a Typical

question 99

Multiple Choice

Banks keep ________ of checking deposits as reserves because on a typical day withdrawals ________ deposits.

• A)more than 100%; are much greater than
• B)exactly 100%; are about the same as
• C)less than 100%; are about the same as
• D)exactly 100%; are much greater than
• E)less than 100%; are much greater than

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Definitions:

Accounts Receivable Balance

The accounts receivable balance is the total amount owed to a company by its customers for goods or services delivered on credit but not yet paid for.

Calendar Year

A one-year period that begins on January 1 and ends on December 31, used for general purposes including statutory reporting and personal timekeeping.

Sales Estimate

An approximate calculation or judgment of the amount of sales a company expects to achieve in a specific period.

Net Working Capital

A measure of a company's liquidity, operational efficiency, and short-term financial health, calculated as current assets minus current liabilities.