When You Open a Checking Account at Bank of America,Bank

question 71

Multiple Choice

When you open a checking account at Bank of America,Bank of America

• A)has more reserves and more excess reserves.
• B)has more reserves,but excess reserves remain unchanged.
• C)has more deposits and less in excess reserves.
• D)has more deposits,but excess reserves remain unchanged.

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Definitions:

Dividends Payable

A liability account on a company's balance sheet representing the amount owed to shareholders from declared dividends not yet paid.

Par Common Stock

Par Common Stock refers to the nominal or face value assigned to common stock shares by the issuing company.

Noncumulative Preferred Stock

A type of preferred stock where dividends not paid in one period do not accumulate or have to be paid in future periods.

Noncumulative Preferred Stock

A type of preferred stock where missed dividend payments are not required to be paid to the shareholders in the future.