Use the Balance Sheet for the Following Questions

question 43

Multiple Choice

Use the balance sheet for the following questions.
Table 29-3

-Refer to Table 29-3. If the reserve requirement is 10 percent, what is the state of this bank?

• A)It can make a new loan of $18 000.
• B)It has less reserves than required.
• C)It has excess reserves of less than $8000.
• D)It has excess reserves of more than $8000.

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Definitions:

Manager's Performance

Evaluation of how effectively a manager meets objectives and achieves goals.

Support Department Allocation Rate

A rate used to charge internal support department costs to producing departments based on usage or benefit derived.

Internal Centralized

A management structure where decisions are made by a few key individuals or a central body within the organization.

Support Department

A segment within an organization that does not directly add to profit but provides essential services for other departments.