Suppose Bank ABC Has a Target Reserve Ratio of 10

question 47

Multiple Choice

Suppose Bank ABC has a target reserve ratio of 10%.If Bank ABC receives a new deposit of $100 000 it will immediately find itself with

• A)no excess cash reserves.
• B)excess cash reserves of $10 000.
• C)excess cash reserves of $90 000.
• D)excess cash reserves of $100 000.
• E)excess cash reserves equal to 10% of its deposits.

Identify the circumstances under which the equity method of accounting is appropriate.

Calculate the investment account changes due to investee's net income, dividends, and excess amortization.

Understand how to account for changes in ownership percentages and their impact on the equity method.

Recognize how intra-entity transactions affect the investment account under the equity method.

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Definitions:

Trait Theories

Theories that endeavor to describe the characteristics that make up human personality in an effort to predict future behavior.

Psychodynamic Theories

A set of psychological theories that emphasize the influence of the unconscious mind and childhood experiences on behavior.

Behaviorist Theories

A view in psychology which states that all behaviors are learned through interaction with the environment through conditioning.

Cognitive Modeling

Cognitive Modeling is the process of creating computational models to simulate human problem-solving and mental task processes.