The Following Balance Sheet Is for the First National Bank

question 116

Multiple Choice

The following balance sheet is for the First National Bank.Assume the desired reserve ratio is 15 percent.

-Refer to the above data.If a cheque for $20,000 is drawn and cleared against this bank,it will have excess reserves of:

• A) $15,000
• B) $20,000
• C) $25,000
• D) $30,000

Understand the concept of professional competency and its components.

Recognize the non-linear nature of achieving competencies.

Identify self-competency as the foundation for developing other key competencies.

Acknowledge the possibility of career success without promotion.

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Definitions:

Market Price

The price at which a good or service is offered in the marketplace.

Differentiated Products

Products that are distinguished from similar products by unique characteristics, branding, or quality, allowing companies to compete beyond price.

Perfectly Competitive

A descriptor of a market scenario where firms face many competitors, sell identical products, and have no control over the market price, leading to optimal efficiency and resource allocation.

Short Run

A time period in which at least one input, like plant size, is fixed and cannot be changed by the firm.