Which of the Following Statements Is Correct

question 1

Multiple Choice

Which of the following statements is correct?

• A) When borrowers repay bank loans, the money supply is increased.
• B) When borrowers take out bank loans, the money supply is decreased.
• C) A single bank can legally lend an amount equal to its total reserves.
• D) A bank can grant loans to customers only if it has excess reserves.

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Definitions:

Continuum Model

A concept or framework suggesting that certain phenomena or variables exist along a continuous, rather than a categorical, scale.

Moderate Depression

A form of depression that is more persistent and severe than mild depression, but not as severe as major depression, impacting daily function.

Diagnosable Disorders

Conditions that can be identified by healthcare professionals based on a specific set of criteria.

Independent Variable

In an experimental setting, a variable that is manipulated or changed by the researcher to determine its effect on another variable.