If Checkable Deposits in Bank a Total $300 Million and the Required

question 144

Multiple Choice

If checkable deposits in Bank A total $300 million and the required reserve ratio is 10 percent,then required reserves at Bank A equal

• A) $3.0 million.
• B) $30.0 million.
• C) $3.3 million.
• D) $300,000

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Definitions:

Investment

The act of allocating resources, usually money, with the expectation of generating an income or profit over time.

Acquisition Method

An accounting process used during the consolidation of financial statements that involves combining the buying and selling entities' assets and liabilities.

Consolidated Financial Statements

Financial documents that combine the accounting records of a parent company and its subsidiaries, presenting the financial position as if they were a single entity.

Equity Method

An accounting technique used to assess the profits earned by a company through its investment in another company, recognizing income or loss in proportion to its ownership share.