Answer Key to Test 3 sample problems

Here is the key to the sample problems. Please note that problems 6, 7, and 8 are outside the scope of our discussion. I should have edited this document better. But questions on different financial instruments are NOT part of this test.

1-A, 2-D, 3-A, 4-B**, 5-B, 6-B, 7-A,
8-A, 9-C, 10-D, 11-C, 12-C, 13-A,
14-A, 15-C, 16-C, 17-C, 18-A, 19-D, 20-C,
21-B, 22-D, 23-D, 24-B, 25-D, 26-D,
27-C, 28-B*, 29-A, 30-B, 31-D, 32-D,
33-C, 34-C,
35-B, 36-B, 37-D, 38-D, 39-B, 40-A.


*I know balance sheets must balance. This question is of a more difficult scope. One could argue that there should be $170 in borrowings from other banks or the Fed. Alternatively, $170 could be considered Net Worth. I have been trying to keep things simple by ignoring net worth. Adding borrowings would be tricky. If I put this question on the test I'd probably accept D as an answer as well. But I do not plan to put on a question of this level of "trickiness".

**4 was initially recorded as A. The correct answer is B.

If you think any of these is wrong please bring it to my attention. Thank you and good luck.