Bank a Has $75,000 in Total Reserves,and Zero Excess Reserves

question 60

Multiple Choice

Bank A has $75,000 in total reserves,and zero excess reserves.The required reserve ratio is 12 percent.Bank A has checkable deposits of

• A) $84,000.
• B) $62,500.
• C) $625,000.
• D) $6,250,000.
• E) $840,000

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Definitions:

Cost Accounting

A branch of accounting focused on calculating and controlling costs of producing or providing services.

Competitive Environment

The external factors and forces that affect an organization's ability to compete in its market, including competitors, market trends, and regulatory conditions.

Objectivity

The quality of being unbiased, unprejudiced, and impartial in analysis and decision-making.

Management Accounting Process

The set of practices that involves the preparation of financial reports and statements for internal use by management for decision making.