Which of the Following Does Not Directly Influence the Amount

question 26

Multiple Choice

Which of the following does not directly influence the amount of required reserves a bank must hold?

• A) The required reserve ratio.
• B) The dollar amount of cash items in process of collection.
• C) The dollar amount of demand deposits outstanding.
• D) The dollar amount of money market deposit accounts outstanding.
• E) The dollar amount of NOW accounts outstanding.

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Definitions:

Percentage Change

A mathematical calculation that shows how much a quantity has increased or decreased as a percentage of its previous value.

Net Operating Income

The profit generated from normal business operations, excluding expenses from interest and taxes.

Contribution Margin Ratio

The proportion of sales revenue that exceeds variable costs, indicating how much contributes to covering fixed costs and generating profit.

Target Profit

The amount of net income a company aims to achieve for a specific period as part of its financial and operational planning.