Which of the Following Statements Is Correct

question 221

Multiple Choice

Which of the following statements is correct?

• A) Excess reserves may be found by subtracting actual from required reserves.
• B) The supply of money declines when the public purchases securities from commercial banks.
• C) Commercial bank reserves are a liability to commercial banks but an asset to Federal Reserve Banks.
• D) Commercial banks reduce the supply of money when they purchase government bonds from the public.

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Definitions:

Hepatocytes

The cells within the lobules of the liver. Hepatocytes process nutrients in the blood and make bile.

Pepsinogen

An inactive precursor of pepsin, an enzyme produced in the stomach that plays a crucial role in the digestive process by breaking down proteins.

Pepsin

An enzyme that allows the body to digest proteins.

Chief Cells

Specialized cells located in the stomach that are responsible for secreting pepsinogen, an important enzyme precursor in the digestive process.