A Bank Has an Average Balance of Transactions Accounts,August 10

question 113

Multiple Choice

A bank has an average balance of transactions accounts,August 10 to 23,of $824.46 million.The average balance in the cash account is $42.014 million over this period.The bank is carrying forward a deficit of $1.276 million from the last reserve period.The rules require no reserves to be maintained for the first $8.5 million,3 percent for amounts between $8.5 million and $45.8 million,and 10 percent thereafter.

What is the reserve to be maintained with fed?

• A)$38.247 million.
• B)$34.419 million.
• C)$36.971 million.
• D)$35.087 million.

Prepare and interpret a contribution format income statement.

Understand the behavior of mixed costs and their impact on business operations.

Understand the concept of mixed costs and how to categorize costs into fixed and variable.

Apply the least-squares regression method to estimate cost formulas.

---

Definitions:

Continental Crust

The thick, buoyant part of the Earth's crust that forms the continents; it is generally older and more complex than oceanic crust.

Granite

A common and widely occurring type of intrusive, felsic, igneous rock, characterized by its granular texture.

Abundant Elements

Chemical elements that occur in large quantities in Earth's crust, atmosphere, or oceans, such as oxygen, silicon, and aluminum.

Calcium Carbonate

A chemical compound with the formula CaCO3, commonly found in rocks as the minerals calcite and aragonite and is the main component of pearls, the shells of marine organisms, snails, and eggs.