Suppose a Transaction Changes the Balance Sheet of TD Canada

question 271

Multiple Choice

Suppose a transaction changes the balance sheet of TD Canada Trust bank as indicated in the following T-account. At this point,what percentage of the new deposits does TD Canada Trust hold in reserves?

• A)100 percent
• B)90 percent
• C)10 percent
• D)5 percent
• E)1 percent

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Definitions:

Resistance To Flow

In the context of electricity, it refers to the opposition that a material presents to the passage of electric current, typically called electrical resistance.

Holding Tank

A container designed to hold a substance temporarily, often used in systems requiring the accumulation of material before further processing or disposal.

Return Path

The return path is the conductive path that allows current to return to its source in an electrical circuit, completing the circuit loop.

Voltage Drop

The reduction in voltage as electric current passes through components or conductive paths within an electrical circuit, due to resistance or impedance.