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:

White Matter

Brain tissue comprising mainly of myelinated nerve fibers, which connect different parts of grey matter to each other.

Nerve Fibers

Long, threadlike extensions of neurons that transmit electrical impulses away from the neuron's cell body, facilitating communication within the nervous system.

CSF

Cerebrospinal Fluid, a clear, colorless bodily fluid that fills the brain's ventricles and surrounds the central nervous system, acting as a cushion and participating in nutrient transport and waste removal.