Which of the Following Is True

question 13

Multiple Choice

Which of the following is true?

• A)​Actual reserves equal required reserves minus excess reserves.
• B)​The predominant liability of virtually all banks is loans.
• C)​The lower the required reserve ratio, the larger the money multiplier.
• D)​If some banks choose not to lend all of their excess reserves, the total amount of money created by an initial cash deposit will be larger.

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Definitions:

Shelter

A place providing temporary or permanent protection and accommodation, especially for people in immediate need or distress.

Theories

Systematic sets of ideas or principles designed to explain certain phenomena or observed facts.

Marriage

A legally recognized union between two individuals in personal relationship, typically signifying cultural, religious, or social bonds.

Family

A group made up of parents and their children, regarded as a unit, regardless of whether they live together.