Vault Cash Is Equal to $2 Million,deposits by Depository Institutions

question 18

Multiple Choice

Vault cash is equal to $2 million,deposits by depository institutions at the central bank are $1 million,the monetary base is $15 million,and bank deposits are $30 million.Bank reserves are equal to

• A)$2 million.
• B)$3 million.
• C)$5 million.
• D)$10 million.

---

Definitions:

Factor

A finance company or bank that buys receivables from businesses and then collects the payments directly from the customers.

Receivables

Receivables are amounts of money owed to a company by its customers or other parties for goods or services provided on credit.

Service Charge

A Service Charge is a fee collected to pay for services related to a primary product or service, such as handling fees, maintenance, or repair services.

Receivables

Money owed to a company by its customers or others for goods or services that have been delivered or used but not yet paid for.