-The Above Table Gives the Initial Balance Sheet for Mega

question 506

Multiple Choice

-The above table gives the initial balance sheet for Mega Bank. Barney comes into the bank and deposits $50 of currency into his checking account. The desired reserve ratio is 3 percent. After Barney's deposit, but before any other actions occur, MegaBank will have excess reserves of

• A) $15.00.
• B) $33.00.
• C) $48.50.
• D) $50.00.

Calculate dividends on preferred and common stock.

Explain the concept and importance of legal capital.

Understand the procedures and practices concerning closing entries and retained earnings.

Recognize the limitations of financial liability for stockholders.

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Definitions:

Act Deontology

A form of deontological ethics focused on the inherent morality of individual actions, regardless of their outcomes.

Rule Deontology

A moral theory that suggests actions are morally right or wrong depending on whether they follow certain rules or duties.

Cognitive Moral Development

A theory proposed by Lawrence Kohlberg that aims to explain the process by which individuals develop their ability to make ethical decisions based on moral reasoning.

Universal Ethical Principles

Fundamental moral guidelines that are believed to be universally applicable and valid, transcending cultural, national, or individual differences.