If a Bank Has $1 Million in Assets and $50,000

question 31

Multiple Choice

If a bank has $1 million in assets and $50,000 in net worth,its liabilities must equal:

• A)$50,000.
• B)$1,050,000.
• C)$50 million.
• D)$1,000,000.
• E)$950,000.

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Definitions:

M Rises

Refers to an increase in a variable or quantity denoted as "M," which could contextually mean a variety of things depending on the field of study.

Recession

A temporary phase of economic downturn characterized by a decrease in commerce and industrial production, typically recognized by a drop in Gross Domestic Product (GDP) for two consecutive quarters.

Quantity Theorists

Economists who believe that the amount of money in circulation is the primary influencing factor on overall levels of prices and inflation in an economy.

Increase in M

An increase in the money supply, referring to the total amount of money within a specific economy available for purchasing goods or services.