Which of the Following Is False

question 58

Multiple Choice

Which of the following is false?

• A)The Fed sets the required reserve ratio that determines the maximum amount of money that banks can lend.
• B)Depository institutions must hold reserve assets equal to a fraction of deposit liabilities; that fraction is called the required reserve ratio.
• C)The Fed controls the amount of cash assets available for reserves.
• D)The Fed must consult with depository institutions before setting the required reserve ratio.

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Definitions:

Gas Exchange

The biological process through which organisms exchange gases (such as oxygen and carbon dioxide) with their environment, crucial for respiration.

Diffuses

The process by which molecules move from an area of higher concentration to an area of lower concentration.

Viscous

A physical property describing a fluid's resistance to flow, with higher viscosity indicating a thicker and slower-moving fluid.

Dermal Gills

Respiratory structures in some aquatic animals that allow for gas exchange directly through the skin.