Assume the Cont

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Assets
Liabilities and Net Worth
Reserves
$40,000
Checkable Deposits
$130,000
Loans
25,000
Stock Shares
45,000
Securities 110,000
Assume the Continental National Bank's balance statement is as shown in the
accompanying table. Assuming a legal reserve ratio of 20 percent, how much in
excess reserves would this bank have after a check for $10,000 was drawn and
cleared against it?
$24,000
$3,000
O $16,000
O $6,000
Transcribed Image Text:Assets Liabilities and Net Worth Reserves $40,000 Checkable Deposits $130,000 Loans 25,000 Stock Shares 45,000 Securities 110,000 Assume the Continental National Bank's balance statement is as shown in the accompanying table. Assuming a legal reserve ratio of 20 percent, how much in excess reserves would this bank have after a check for $10,000 was drawn and cleared against it? $24,000 $3,000 O $16,000 O $6,000
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