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:

Ants

Social insects of the family Formicidae, known for their complex colonies and behaviors, including farming, warfare, and symbiotic relationships with other organisms.

Bats

The only mammals capable of sustained flight, known for their echolocation ability, which they use to navigate and find food in the dark.

Causes of Extinction

Factors such as habitat destruction, overexploitation, climate change, pollution, and the introduction of invasive species that lead to the disappearance of species from the Earth.

Biodiversity

The variety and variability of life on Earth, encompassing the diversity of species, their genes, and the ecosystems they inhabit.