Suppose the Desired Reserve Ratio Is 10 Percent

question 369

Multiple Choice

Suppose the desired reserve ratio is 10 percent.If the Commerce Bank has total deposits of $20,000,total assets of $10,000,and actual reserves of $8000,the amount of excess reserves is

• A)$2,000.
• B)$6,000.
• C)$800.
• D)$100.
• E)$0.

Recognizing the significance of social media privacy and etiquette in interpersonal communication.

Understanding the role and impact of electronically mediated communication.

Identifying strategies to manage negative emotions and maintain effective communication.

Understanding the role and interpretation of nonverbal signals in conveying messages.

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Definitions:

Owners' Equity

This is the residual interest in the assets of the entity after deducting liabilities, essentially representing the ownership interest of shareholders in a company.

Common Stock

Represents ownership shares in a corporation, providing voting rights and potential dividends to shareholders.

Paid-In Surplus

Additional capital that is contributed by shareholders above the par value of the shares, also known as additional paid-in capital.