Use the Balance Sheet Below for the Following Questions

question 39

Multiple Choice

Use the balance sheet below for the following questions.
Table 29-2

-Refer to Table 29-2. What is the reserve ratio?

• A)0 percent
• B)20 percent
• C)80 percent
• D)100 percent

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Definitions:

Geometric Average Return

is a method of calculating the average rate of return on an investment that accounts for the effects of compounding, typically lower than the arithmetic average return.

Arithmetic Average Return

The simple mean of a series of returns generated over a period of time.

Dollar-Weighted Return

A method of calculating an investment's return that accounts for the timing and amount of cash flows into the investment.

Arithmetic Average

The simple mean calculated by adding a set of values and then dividing by the number of values.