Table 29-5 the Following Information Pertains to the Bank of Kingston

question 56

Multiple Choice

Table 29-5 The following information pertains to the Bank of Kingston.

-Refer to Table 29-5. If the Bank of Kingston has lent out all the money it can given its deposits, then what is its reserve ratio?

• A)1 percent
• B)5 percent
• C)10 percent
• D)15 percent

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Definitions:

Common Stock

Shares of ownership in a corporation, giving holders voting rights and a claim on profits in the form of dividends.

Treasury Stock

A corporation’s own stock that has been issued and subsequently reacquired from shareholders by the corporation but not retired.

Investing Activity

Transactions involving the purchase or sale of long-term assets and investments, reflected in the cash flow statement of a company.

Operating Activities

Activities that relate to the primary operations of a company, such as selling goods and services, which generate revenue and expenses.