Which of the Following Statements Is Not Correct

question 64

Multiple Choice

Which of the following statements is not correct?

• A)The actual cash reserves of a chartered bank equal its excess plus its desired reserves.
• B)A bank's assets plus its net worth equal its liabilities.
• C)When borrowers repay bank loans, the supply of money is reduced.
• D)A single chartered bank can safely lend an amount equal to its excess reserves.

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Definitions:

Producer Surplus

The difference between what producers are willing to accept for a good versus what they actually receive.

Producer Surplus

The difference between what producers are willing to accept for a good versus what they actually receive, often seen as a measure of producer welfare.

Consumer Surplus

The disparity between the cost consumers are prepared to pay for a good or service and the cost they actually encounter.

Buyers

Individuals or entities that purchase goods or services in the market.