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.

---

Definitions:

Visual

Pertaining to sight or seeing, often used in the context of learning styles, communication, or presentations.

Gestures

Physical movements made with a part of the body, especially hands and arms, used to express feelings or communicate ideas.

Nonverbal Communication

The transfer of information through body language, facial expressions, gestures, and without using spoken language.

Thumbs-Up

A hand gesture where the thumb is extended upward, commonly used to show approval, agreement, or that everything is good.