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Number of business days you can hold a Trust Account Check

a) 5
b) 10
c) 15
d) 20

User TiGer
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1 Answer

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Final answer:

The query is part of business studies related to financial regulations and would require more context for a definitive response. For the T-account example, Humongous Bank with $20 million in assets must hold 5% ($1 million) in reserves and can lend out the remaining $19 million after the first round of loans.

Step-by-step explanation:

The question pertains to the number of business days one can legally hold a Trust Account Check. This topic falls under financial regulations, which is a part of business, banking, and law studies. However, exact regulations can vary by jurisdiction and specific context within the financial industry, so a definitive answer would require more legal or location-specific context.

For the second part of the question regarding Humongous Bank and a T-account illustration after the bank has made its first round of loans:

  • Initially, the bank has $20 million in its reserves.
  • With a 5% reserve requirement, Humongous Bank must hold $1 million (5% of $20 million) in reserves.
  • The bank can loan out the remaining $19 million.

The T-account for Humongous Bank after it has made its first round of loans would show $1 million on the debit side (as reserves) and $19 million on the credit side (as loans).

User AnirbanDebnath
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