Use the Following to Answer Questions

question 101

Multiple Choice

Use the following to answer questions:
-(Table: ABC Bank's Balance Sheet) Look at the table ABC Bank's Balance Sheet. The bank is holding excess reserves of:

• A)$17 million.
• B)$15 million.
• C)$5 million.
• D)$25 million.

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Definitions:

Instrument

Refers to a legal document formalizing an agreement or right, often used in financial transactions.

Certified Check

A check that is accepted by the bank from which the funds are drawn.

Accepted

A term indicating that an offer has been formally agreed to, creating a binding contract between parties.

Check

A special draft that orders a bank (the drawee) to pay a specified sum of money to the payee from the drawer’s account.