Which of the Following Statements Is Correct

question 160

Multiple Choice

Which of the following statements is correct?

• A) The actual reserves of a commercial bank equal its excess reserves minus its required reserves.
• B) A bank's liabilities plus its net worth equal its assets.
• C) When borrowers repay bank loans, the supply of money increases.
• D) A single commercial bank can safely lend a multiple amount of its excess reserves.

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Definitions:

Mirror Neurons

Neurons that fire both when an individual acts and when the individual observes the same action performed by another, contributing to empathy and understanding.

Neurotransmitter

Chemical messengers used by the nervous system to transmit messages between neurons or from neurons to muscles.

Hormones

Chemical messengers produced by the endocrine glands that are released into the blood to affect target organs.

Emotional Outbursts

Sudden, extreme expressions of strong emotion that are often disproportionate to the situation at hand, sometimes resulting from stress, frustration, or other intense feelings.