If a Bank Increases the Amount of Cash It Has

question 98

Multiple Choice

If a bank increases the amount of cash it has in its vault,how would this affect the bank's balance sheet?

• A) Reserves would increase, liabilities would stay the same, and owner's equity would increase.
• B) Reserves would decrease, liabilities would stay the same, and owner's equity would increase.
• C) Reserves would increase, liabilities would decrease, and owner's equity would decrease.
• D) Reserves would increase, liabilities would stay the same, and owner's equity would decrease.
• E) Reserves would decrease, liabilities would increase, and owner's equity would decrease.

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Definitions:

Memory Impairment

A decrease in the ability to remember information or events, which can be caused by various conditions including brain injury, disease, or psychological trauma.

Alzheimer's Disease

A chronic neurodegenerative disease that typically starts slowly and gradually worsens over time, affecting memory, thinking, and behavior.

Declarative Memory

The aspect of human memory that involves the capacity to recall factual information, such as events, words, and concepts.

Procedural Memory

A type of long-term memory that encompasses the unconscious knowledge of how to perform tasks and skills, such as riding a bicycle or typing.