Table 10-4 The Following Information Pertains to the Bank of Moncton

question 100

Multiple Choice

Table 10-4
The following information pertains to the Bank of Moncton.
-Refer to the Table 10-4.If the Bank of Moncton has lent out all the money it can,then what is its reserve ratio?

• A) 1 percent
• B) 5 percent
• C) 10 percent
• D) 15 percent

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Definitions:

Financing Activities

Cash flow activities related to changes in the size and composition of the equity capital and borrowings of an entity.

Cash Receipts

The total amount of money received by a business during a specific period.

Interest and Dividends

Income received from investments, with interest earned on debt investments and dividends received from equity investments.

Operating Activities

Tasks and transactions directly related to the primary business functions of providing goods or services to customers.