What Is the Initial Impact on Reserves of a $2,000

question 222

Multiple Choice

What is the initial impact on reserves of a $2,000 deposit if the reserve ratio is 10%?

• A)​$200 in excess reserves and $1,800 in required reserves
• B)​$1,800 in excess reserves and $200 in required reserves
• C)​$2,00 in excess reserves and zero required reserves
• D)​zero excess reserves and $2,000 in required reserves

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Definitions:

Budgeted Sales Data

Projections or estimates of the sales revenue expected to be achieved in a future period.

Cash Receipts

The collection of money, typically in the form of cash, checks, or electronic transfers, for goods or services received.

Direct Materials Budget

A financial plan that estimates the quantity and cost of direct materials required for production during a specific period.

Raw Materials

Any materials that go into the final product.