Which of the Following Statements Is Correct

question 192

Multiple Choice

Which of the following statements is correct?

• A)required reserves = (total deposits)× (excess reserve ratio)
• B)required reserves = (total reserves)× (excess reserve ratio)
• C)required reserves = (total deposits)× (required reserve ratio)
• D)required reserves = (total deposits)÷ (required reserve ratio)
• E)required reserves = (total deposits)× (required reserve ratio)- excess reserves

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Definitions:

Net Sales

The total sales revenue of a company, minus the returns, allowances for damage or loss, and discounts.

Gross Profit

The difference between sales revenue and the cost of goods sold, indicating the efficiency of a company in managing its production and supply chain.

Chief Executive Officer

The highest-ranking executive in a company, responsible for making major corporate decisions, managing overall operations, and resources.

Financial Statements

Financial statements are formal records of the financial activities and position of a business, person, or entity, providing an overview of a financial situation over a specific period.