Actual Reserves Are Equal to

question 71

Multiple Choice

Actual reserves are equal to

• A)desired reserves plus excess reserves.
• B)government securities plus cash in the bank's vault.
• C)minimum balances plus desired reserves.
• D)excess reserves plus liabilities.
• E)required reserves plus fractional deposits.

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Definitions:

Exports

Goods or services sent from one country to another for sale or trade.

Significant Influence

The power to participate in financial and operating policy decisions of another entity without having control over it.

Dividends

Distributions from a company's earnings given to its shareholders by the corporation.

Net Income

The residual income of a company, which is calculated after expenses and taxes have been subtracted from total revenue.