If a Local Bank Decides to Convert Some of Its

question 53

Multiple Choice

If a local bank decides to convert some of its U.S.Treasury securities into cash,which it will hold in its vault,what impact will this have on the bank's balance sheet?

• A) Reserves would increase, liabilities would stay the same, and owner's equity would decrease.
• B) Reserves would increase, liabilities would stay the same, and owner's equity would increase.
• C) Reserves would decrease, liabilities would decrease, and owner's equity would decrease.
• D) Reserves would decrease, liabilities would stay the same, and owner's equity would decrease.
• E) Reserves would stay the same, liabilities would increase, and owner's equity would decrease.

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Definitions:

Capacity Planning

Capacity Planning involves the process of determining the production capacity needed by an organization to meet changing demands for its products or services.

Aggregate Planning

A process by which a company determines optimal levels of capacity, production, subcontracting, inventory, stockouts, and pricing strategies over a specified time frame.

Short-Term Schedules

Plans that outline specific activities, resources, and timelines within a short timeframe, typically up to one year.

Forward Scheduling

Forward scheduling is a planning method where tasks are scheduled from the start date onwards to determine the earliest possible completion time.