-In the Balance Sheet Above,the Entries Are in Millions of \text

question 263

Multiple Choice

$\begin{array}{|l|l|}\hline {\text { Assets }} &{\text { Liabilities }} \\\hline \text { Reserves } & \\\$ 400 & \text { Deposits } \\\text { Loans } & \$ 1,200 \\\$ 800 & \\\text { Total } & \text { Total } \\\$ 1,200 & \$ 1,200\\\hline \end{array}$
-In the balance sheet above,the entries are in millions of dollars for the FBN Bank.After FBN Bank loans the maximum amount it can,the loans have been spent,and the proceeds have been deposited in other banks,FBN Bank has excess reserves of

• A) $300 million.
• B) $200 million.
• C) $100 million.
• D) $0.

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Definitions:

Express Agency

A relationship where the agent is explicitly given the authority to act on behalf of the principal, often through a written or verbal agreement.

Obligation

An obligation, either ethical or legal, to take a certain action or to avoid taking a particular action.

Terminates

Marks the end or conclusion of something, such as a contract, agreement, or employment.

Fiduciary Duty

An obligation to act in the best interest of another party, emphasizing trust, honesty, and loyalty.