Bank West's Balance Sheet

question 114

Multiple Choice

Bank West's Balance Sheet
Assets Liabilities
Cash $500 Deposits $20 000
Deposits at Bank of Canada $700 Capital $1 000
Loans and Mortgages $19 800 $21 000
$21 000
TABLE 26-3
-Refer to Table 26-3.Assume that Bank West is operating with no excess reserves.What is its actual reserve ratio?

• A)2.5%
• B)2.4%
• C)5.7%
• D)6%
• E)10%

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Definitions:

Object Permanence

The comprehension in infants that items remain in existence even when they are not visible, audible, or tangible.

Conservation

In cognitive development, the understanding that certain properties of an object or substance remain the same even when its appearance is altered, typically developed during the concrete operational stage.

Conservation

In cognitive psychology, the concept that children learn that quantity, length, or number remain the same despite changes in appearance or form.

Object Permanence

The understanding in human development that objects continue to exist even when they cannot be seen, heard, or touched.