The Manager of the Bank Where You Work Tells You

question 136

Multiple Choice

The manager of the bank where you work tells you that your bank has $10 million in excess reserves. She also tells you that the bank has $400 million in deposits and $355 million dollars in loans. Given this information you find that the reserve requirement must be

• A)35/355.
• B)45/355.
• C)35/400.
• D)45/400.

Understand the scope of internal control, emphasizing the significance of authority levels and physical controls.

Acknowledge the role of technology in internal controls and the persistent need for such systems in automated environments.

Identify the principles of segregating duties to enhance the effectiveness of internal control systems.

Identify and classify different types of fractures.

---

Definitions:

Approximate Price Level

An estimated cost or price range of goods or services in a particular market or sector, often used for budgeting or planning purposes.

Common Approaches

Standard or widely accepted methods or procedures used to achieve a particular goal or complete a task.

Competition-oriented

An approach or strategy focused on understanding, adapting to, and outperforming competitors in the marketplace.

Price Level

The current average cost of goods and services in an economy or specific market, which can affect purchasing power and economic health.