Assume the Trusty Bank's Balance Sheet Is as Follows

question 56

Multiple Choice

Assume the Trusty Bank's balance sheet is as follows:

-Refer to the information above to answer this question.Assuming a target reserve ratio of 8 percent how much excess reserves would this bank have after a cheque for $10,000 was cleared against it?

• A)0.
• B)$4,200.
• C)$5,000.
• D)$14,200.
• E)$15,000.

---

Definitions:

Custodian

A custodian is a person or organization that has responsibility for or takes care of something, such as managing and safeguarding assets.

Minor

A person under the age of legal adulthood, often defined as 18 years, but the age can vary depending on the jurisdiction.

Act

In legal terms, an act refers to a statute or law passed by a legislative body at the federal, state, or local level.

Bailment

is the process of placing personal property or goods in the temporary custody or control of another, often for a specified purpose.