Any Amount That a Bank Chooses to Keep on Hand

question 47

Multiple Choice

Any amount that a bank chooses to keep on hand beyond what it is required to is called:

• A) excess reserves.
• B) excess deposits.
• C) federal funds.
• D) extra holdings.

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Definitions:

Profit Margin

A financial ratio that indicates the percentage of revenue that exceeds the cost of goods sold, showing the profitability of a company.

Asset Turnover

A financial ratio that measures the efficiency of a company's use of its assets in generating sales revenue—the higher the ratio, the more efficiently the company is utilizing its assets.

Financial Statements

These are written records that convey the business activities and the financial performance of a company, typically including the balance sheet, income statement, and cash flow statement.

Benjamin Graham

A renowned economist and professional investor, regarded as the father of value investing.