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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
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.
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