Question 1
A checking deposit in a bank is considered ________ of that bank.
◦ an asset
◦ a liability
◦ net worth
◦ capital
Question 2
Refer to the information provided in Table 25.1 below to answer the question(s) that follow.
Refer to Table 25.1. The required reserve ratio is 25%. If the First Charter Bank is meeting its reserve requirement and has no excess reserves, its reserves equal
◦ $100.
◦ $200.
◦ $300.
◦ $600.