Which of the Following Statements Is Most Correct

question 60

Multiple Choice

Which of the following statements is most correct?

• A)FDIC membership is required only for banks having national charter.
• B)The First Bank of the United States was the first incorporated bank created along modern banking lines.
• C)Secured loans represent the single most important activity of the commercial bank.
• D)All the above statements are false.

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Definitions:

Equation of Exchange

An economic equation (MV = PQ) that relates the money supply (M) and its velocity (V) to the price level (P) and quantity of goods sold (Q).

MV = PQ

An equation of exchange in economics that states money supply times the velocity of money equals the price level times the output (quantity of goods and services produced).

Big Government

A term referring to a government or state perceived as overly involved in the various aspects of societal, economic, and personal lives of its citizens.

Keynesians

Supporters of the economic theories established by John Maynard Keynes, focusing on total spending in the economy and its effects on output and inflation.