If Total Reserves for a Bank Are $200,000,excess Reserves Are

question 114

Multiple Choice

If total reserves for a bank are $200,000,excess reserves are zero,and demand deposits are $1,000,000,then the money multiplier must be:

• A) 5.
• B) 10.
• C) 15.
• D) 20

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Definitions:

Non-Inventory

Items or services a company sells or uses in its operations that are not held in inventory, such as supplies, subscriptions, or services.

QBO

Abbreviation for QuickBooks Online, a cloud-based accounting software designed for small and medium-sized businesses.

3-Way Match

A process in accounts payable to compare the purchase order, delivery receipt, and invoice before processing a payment, ensuring accuracy and preventing fraud.

Internal Control

A framework used by businesses to ensure the integrity of financial and accounting information, promote accountability, and prevent fraud.