A Chartered Bank's Desired Reserve Can Be Calculated By

question 180

Multiple Choice

A chartered bank's desired reserve can be calculated by:

• A)dividing its excess reserves by its desired reserve.
• B)dividing its desired reserve by its excess reserves.
• C)multiplying its demand-deposit liabilities by the reserve ratio.
• D)multiplying its demand-deposit liabilities by its excess reserves.

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Definitions:

Locational Cost-Volume Analysis

A method used in business to evaluate how geographical locations affect cost and production levels to optimize operations and logistics.

Fixed Costs

Costs that do not vary with the level of production or sales, such as rent, salaries, and depreciation.

Goods-Producing Locations

Sites where physical products are manufactured or assembled from raw materials or components.

Service Facility Location

The process of choosing the most appropriate location for a service establishment to optimize accessibility to customers and operational efficiency.