Which Statement Is True

question 68

Multiple Choice

Which statement is true?

• A)Vault cash is considered a secondary reserve.
• B)The larger the reserve requirement,the smaller the deposit expansion multiplier.
• C)Open market operations are borrowing by banks from the Fed.
• D)The comptroller of the currency does check clearing.

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Definitions:

Authority

The legitimate or socially approved use of power within a given role, institution, or situation.

Subsistence groups

Communities or social groups that rely on natural resources and their immediate environment for their food, shelter, and clothing, often through hunting, gathering, fishing, or subsistence agriculture.

Distribution

The way in which something is shared out among a group or spread over an area.

Consumption

The process by which goods and services are utilized by individuals or groups to satisfy personal or collective needs or desires.