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:

Neurons

Electrically excitable cells in the nervous system that process and transmit information through electrical and chemical signals.

Micrograph

A micrograph is a photograph or digital image taken through a microscope or similar device to show a magnified image of an object.

Gap Junctions

Specialized intercellular connections that facilitate the direct transfer of ions and small molecules between the cytoplasms of adjacent cells.

Intercalated Discs

Specialized connections between myocardial cells in the heart, facilitating the synchronized contraction of cardiac tissue.