If a Bank Is "Loaned Up," It Has No ________

question 146

Multiple Choice

If a bank is "loaned up," it has no ________ and thus can make no ________.

• A) required reserves; deposits
• B) assets; liabilities
• C) demand deposits; withdrawals
• D) excess reserves; more loans

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Definitions:

Placed on Account

A term referring to a transaction being recorded on a company's books under an account receivable or payable, typically indicating a credit sale or purchase.

Accounting Equation

A foundational principle in accounting stating that assets equal liabilities plus equity, serving as the basis for the double-entry bookkeeping system.

Vendor Payment

The process of paying money owed to a supplier for products or services purchased on credit.

Services Performed

Refers to the completed tasks or provided services by a company or individual for which payment is due.