If Reserve Requirements Are 3 Percent and Capital Requirements Are

question 83

Multiple Choice

If reserve requirements are 3 percent and capital requirements are 10 percent, the bank meets:

• A) reserve requirements but not capital requirements.
• B) neither reserve requirements nor capital requirements.
• C) both reserve and capital requirements.
• D) capital requirements but not reserve requirements.
• E) Not enough information is given.

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Definitions:

Accumulating

The process of gathering or amassing over a period of time.

Allocating

The process of apportioning costs or resources among departments, activities, or products.

Receiving Report

The form or electronic transmission used by the receiving personnel to indicate that materials have been received and inspected.

Purchased Materials

Raw materials and components that are bought by a company from external suppliers for use in the production process.