If You Go into a Bank Which Faces a 10

question 148

Multiple Choice

If you go into a bank which faces a 10% required reserve ratio and borrow $1,000, the bank will ____ your checking account at the bank.

• A)​add $1,000 to
• B)​subtract $1,000 from
• C)​add $5,000 to
• D)​subtract $5,000 from

---

Definitions:

Surplus Material

Excess materials that are not required for current production needs and may be sold or reused in future projects.

Purchased Lots

Refers to parcels or quantities of goods acquired by a company, often used in reference to real estate or bulk purchases of inventory.

Relevant Cost

Costs that will be affected by a decision and will have an impact on the future.

Variable Production Cost

Charges that fluctuate in line with production levels, such as direct labor and materials used.