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:

Web Page

A document accessible on the internet through a web browser, typically written in HTML, that provides information or facilitates interaction.

Storage Location

A specific area, whether physical or virtual, designated for storing data, files, or materials.

Concentric Circle

A series of circles that share the same center point but have differing radii, creating a pattern of nested circles.

Pie-Shaped Wedge

A geometric shape resembling a slice of pie, often used in charts or graphs to represent data fractions or percentages.