A Bank Holds Its Reserves as ________ and ________

question 184

Multiple Choice

A bank holds its reserves as ________ and ________.

• A)securities; loans
• B)securities; deposits at the Federal Reserve
• C)vault cash; deposits at the Federal Reserve
• D)vault cash; loans

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Definitions:

Machine-Hours

A measure of production output or activity level using the total hours machines are operated.

Plantwide Predetermined

A uniform overhead rate used across an entire plant or factory, calculated by dividing estimated overhead costs by an estimated allocation base like labor hours or machine hours.

Machine-Hours

An operating measure that quantifies the amount of time production equipment is utilized in the manufacture of goods.

Predetermined Overhead Rate

A rate calculated before a production period based on estimated overhead costs and estimated activity, used to allocate overhead costs to products.