Which of the Following Statements Is False

question 44

Multiple Choice

Which of the following statements is false?

• A) A bank's assets are its uses of funds.
• B) A bank issues liabilities to acquire funds.
• C) The bank's assets provide the bank with income.
• D) Bank capital is recorded as an asset on the bank balance sheet.

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Definitions:

Accounting Profits

The difference between total revenue and explicit costs; the net income a firm reports on its income statement.

Total Costs

The aggregate of all expenses associated with manufacturing products or services, which includes fixed and variable costs.

Most Efficient Output

The level of production at which a firm achieves the lowest possible cost per unit, maximizing productivity and minimizing waste.

Short Run

A period in economic analysis where at least one input is fixed and cannot be adjusted by firms, contrasting with the long run where all inputs are variable.