The Table Given Below Records the Amount of New Deposits

question 124

Multiple Choice

The table given below records the amount of new deposits, the value of required reserves, and total amount loaned out by Banks 1, 2, and 3. Table 12.3
Refer to Table 12.3.What is the reserve requirement?

• A)11 percent
• B)90 percent
• C)10 percent
• D)9 percent
• E)19 percent

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Definitions:

Revenue

Income generated from normal business operations and includes discounts and deductions for returned merchandise.

Accounts Payable

Liabilities of a business that represent amounts owed to creditors for goods and services received but not yet paid for.

Credit Entries

Entries made on the right side of an account in double-entry bookkeeping, indicating an increase in liabilities, revenue, or equity, or a decrease in assets.

Revenues

The total income generated by a company from its normal business activities, often from the sale of goods and services to customers.