Any Bank That Uses Deposits to Make Loans

question 155

Multiple Choice

Any bank that uses deposits to make loans

• A)operates on a 100 percent reserve system
• B)operates on a fractional reserve system
• C)does not operate on a reserve system
• D)does not keep reserves
• E)charges an interest rate determined by the reserve ratio

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Definitions:

Total Job Cost

The complete cost of a particular job, including materials, labor, and overhead.

Overhead Applied

The allocated amount of indirect costs assigned to cost objects based on a predetermined rate.

Manufacturing Overhead

All manufacturing costs that are not directly attributable to the finished product, including indirect labor, materials, and other expenses.

Estimated Total

An approximation of the sum or magnitude of a particular set of values or items, projected from sample data or generated through analysis.