Which of the Following Statements About Depository Institutions Is False

question 119

Multiple Choice

Which of the following statements about depository institutions is false?

• A)They create liquidity by borrowing long and lending short.
• B)They keep reserves to meet cash withdrawals.
• C)A credit union is an example of a depository institution.
• D)They pool, and therefore reduce, risk.
• E)They borrow at lower interest rates and lend at higher rates.

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Definitions:

Neural Connections

The links between neurons in the brain that are formed through synapses, allowing for communication between different parts of the brain and the nervous system.

Personality Change

Alterations in an individual's characteristic patterns of thinking, feeling, and behaving, which can be due to various factors.

Phineas Gage

A railroad worker who survived a severe brain injury in the 19th century, providing valuable insights into the relationship between brain function and personality.

Frontal Lobes

The part of the brain located behind the forehead that is responsible for voluntary movement, speech, and complex thought processes.