If Excess Reserves Are $30,000,demand Deposits Are $100,000,and the Required

question 89

Multiple Choice

If excess reserves are $30,000,demand deposits are $100,000,and the required reserve ratio is 15 percent,then total reserves are

• A)$45,000.
• B)$15,000.
• C)$30,000.
• D)$130,000.

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Definitions:

Variable Costs

Expenses that fluctuate with changes in production volume or business activity levels.

Special Order

An order for goods or services that is outside the company's normal production or service offerings, often requiring special pricing or terms.

Financially Better

A state or condition where financial health, performance, or position has improved or is superior to a previous state or to another entity's state.

Total Contribution Margin

The difference between total sales revenue and total variable costs, indicating how much revenue contributes toward covering fixed costs and generating profit.