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If a Bank Has Deposits of $10,000 and Reserves of $5,000

question 155

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If a bank has deposits of $10,000 and reserves of $5,000 and if the reserve requirement is 20%, its excess reserves are $3,000.


Definitions:

Inventory Account

Inventory Account is an asset account on the balance sheet that reports the value of a company's inventory - raw materials, work-in-process, and finished goods.

Factory Overhead

Manufacturing costs that are not raw material or direct labor costs.

Raw Materials

The basic materials from which products are manufactured or made.

Corporate Headquarters

The main office or center of operations for a corporation, where key managerial and administrative activities are conducted.

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