Use the Following Balance Sheet for Bank of the Universe,which

question 96

Multiple Choice

Use the following balance sheet for Bank of the Universe,which is one of many banks in a banking system.
Table 13.2-Bank of the Universe Balance Sheet
-Refer to Table 13.2.With a required reserve ratio of 15 percent,Bank of the Universe would have excess reserves of:

• A) $150,000.
• B) $850,000.
• C) $1,000,000.
• D) Zero.

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Definitions:

Pre-Acquisition Subsidiary Revenues

Revenues generated by a subsidiary prior to being acquired by a parent company.

Calendar Year

The period of time from January 1st to December 31st, used for general purposes including statutory, administrative, and fiscal activities.

Consolidated Net Income

The combined total net income of a parent company and its subsidiaries, after eliminating intercompany transactions and balances.