Company X Sells Widgets

question 33

Multiple Choice

Company X sells widgets. The following information summarizes the company's operating activities for the year: What is total operating expense?

• A)$3,000
• B)$2,500
• C)$3,500
• D)$4,500

---

Definitions:

Actual Reserves

The total funds a bank has in its vault or deposited with the central bank, available for immediate use.

Required Reserves

Required reserves refer to the minimum amount of funds that a bank must hold in reserve against deposits, as mandated by central banking regulations to ensure bank liquidity.

Excess Reserves

The reserves that banks hold over and above the regulatory requirements set by the central bank or banking regulator.

Excess Reserves

Banking reserves exceeding the reserve requirement set by a central bank, not lent out to the bank's clients.