A Chartered Bank Has Desired Reserve of $6000 and the Reserve

question 138

Multiple Choice

A chartered bank has desired reserve of $6000 and the reserve ratio is 20 percent.What are the chartered bank's demand-deposit liabilities?

• A)$1,200
• B)$9,000
• C)$30,000
• D)$120,000

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Definitions:

Work in Process

Inventory that includes goods partially completed but not yet ready for sale, representing the costs of raw materials, labor, and overhead incurred up to that point.

Job-Order Costing

An accounting method used to track the expenses of producing a specific job, helping in setting prices and identifying profitability.

Cost of Goods Sold

The specific costs incurred in creating products that are sold by a business.

Manufacturing Overhead

All manufacturing costs other than direct materials and direct labor, including expenses like rent, utilities, and equipment depreciation.