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.

---

Definitions:

Cyclooctane

A cyclic hydrocarbon with the formula C8H16, consisting of a ring of eight carbon atoms.

Line Structure

A simplified drawing that represents a molecule's structure with lines representing bonds between atoms and excludes showing hydrogen atoms bonded to carbon.

Benzene

A colorless, flammable, ring-shaped hydrocarbon with the formula C6H6, known for its role in organic chemistry as a building block for more complex molecules.

Cyclohexane

A colorless, flammable liquid with a distinctive detergent-like smell, commonly used as an organic solvent and a precursor to nylon.