Table 13-4 -In Table 13-4,if a Customer Withdrew $10,000 the Bank Would

question 100

Multiple Choice

Table 13-4

-In Table 13-4,if a customer withdrew $10,000 the bank would

• A)have to borrow money to meet the desired reserve ratio.
• B)have excess reserves of $5,000.
• C)have zero excess reserves.
• D)have $1,000 in excess reserves.

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Definitions:

One-Time Expense

An uncommon or non-recurring charge that companies incur, which does not reflect regular operating activities.

Straight-Line Depreciation

A technique for determining an asset's depreciation by uniformly distributing its cost throughout its lifespan.

Operating Cash Inflow

Cash received by a company during its normal business operations.

After-Tax Discount Rate

The rate used to discount future cash flows to their present value, taking into account the effects of taxes.