Which of the Following Statements Is True

question 56

Multiple Choice

Which of the following statements is true?

• A)In theory, an FI that has 15 per cent of its liabilities in demand deposits and other transaction accounts must stand ready to pay out that amount by liquidating an equivalent amount of asset on any banking day.
• B)In practice, an FI that has 15 per cent of its liabilities in demand deposits and other transaction accounts must stand ready to pay out that amount by liquidating an equivalent amount of asset on any banking day.
• C)In theory, an FI that has 15 per cent of its liabilities in demand deposits and other transaction accounts must stand ready to pay out half of that amount by liquidating an equivalent amount of asset on any banking day.
• D)In practice, an FI that has 15 per cent of its liabilities in demand deposits and other transaction accounts must stand ready to pay out half of that amount by liquidating an equivalent amount of asset on any banking day.

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Definitions:

Wu Family Shrines

Ancient Chinese shrines constructed by the Wu family during the Han dynasty, noted for stone reliefs depicting Confucian morals and the celestial world.

Indian Stupa

is a dome-shaped building erected as a Buddhist shrine in the Indian subcontinent, serving as a monument to Buddha or other saintly figures and a focal point for meditation.

Fogong Si Pagoda

A wooden Buddhist pagoda located in Ying County, Shanxi, China, notable for being one of the oldest and tallest wooden structures in the world.

Chan Buddhist

A tradition of Buddhism originating in China, emphasizing meditation, intuition, and sudden enlightenment, known in Japan as Zen Buddhism.