Which of the Following Statements Is Not Correct

question 64

Multiple Choice

Which of the following statements is not correct?

• A)The actual cash reserves of a chartered bank equal its excess plus its desired reserves.
• B)A bank's assets plus its net worth equal its liabilities.
• C)When borrowers repay bank loans, the supply of money is reduced.
• D)A single chartered bank can safely lend an amount equal to its excess reserves.

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Definitions:

Gross Income

The total amount of income earned by an individual or entity before any deductions or taxes are applied.

Earned Income Credit

A refundable tax credit for low to moderate-income working individuals and families, particularly those with children.

Qualifying Child

A dependent of a taxpayer who meets specific IRS criteria for age, relationship, residency, and support for tax benefits.

Retirement Savings

Funds accumulated for retirement, often involving tax advantages, through vehicles such as 401(k) plans, IRAs, or annuities.