The Total Amount of Required Reserves in the Banking System

question 51

Multiple Choice

The total amount of required reserves in the banking system is equal to the ________ the required reserve ratio and checkable deposits.

• A)sum of
• B)difference between
• C)product of
• D)ratio between

---

Definitions:

Net Operating Income

The profit a company makes from its core business operations, excluding deductions of interest and taxes.

Operating Loss

A loss incurred when a company's operating expenses exceed its gross profits or revenues, indicating that the core operations are not profitable.

Absorption Costing

Absorption Costing is an accounting method that includes all manufacturing costs (direct materials, direct labor, and both variable and fixed manufacturing overhead) in the cost of a product.

Unit Product Cost

The total cost (both fixed and variable) associated with a product, divided by the number of units produced.