The sum of the coins and currencies in the bank's vault and its deposit in the Fed is called:
a. vault cash.
b. transaction deposits.
c. legal reserves.
d. required reserves.
e. loanable funds.
Question 2
Whenever a price ceiling is imposed in a market,
a. quantity demanded exceeds quantity supplied and a surplus results.
b. quantity demanded exceeds quantity supplied and a shortage results.
c. quantity supplied exceeds quantity demanded and a surplus results.
d. it is necessary to know whether the ceiling is imposed above or below the equilibrium price in order to determine whether the quantity traded will be affected.
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Example of Reconciling a Bank Statement
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