Table 132
ABC Bank Balance Sheet Refer to Table 13

question 128

Multiple Choice

$\begin{array}{l|l}\text { Assets }&\text { Liabilities }\\\hline \text { Total reserves }\quad\$80,000&\text { Transactions accounts }\quad\$200,000\\\text { Loans }\quad120,000\end{array}$

Table 13.2
ABC Bank Balance Sheet Refer to Table 13.2.With total reserves of $80,000 and a required reserve ratio of 25 percent,ABC Bank could support maximum transactions account balances of

• A)$20,000.
• B)$320,000.
• C)$50,000.
• D)$2,000,000.

---

Definitions:

Cost Formula

A formula designed to estimate expenses across various activity ranges, including both fixed and variable cost elements.

Fixed Manufacturing Cost

Costs that do not change with the level of production output, such as rent, insurance, and salaries of permanent staff.

Monthly Production Volume

The total quantity of goods and services produced by a company in a single month, often measured to track efficiency and productivity.

Mixed Cost

Expenses that have both fixed and variable components, changing in total with the level of activity but also containing a constant element.