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.
Correct Answer:
Verified
Q98: Which of the following describes the fundamental
Q99: The chartered banking system can lend by
Q100: Q101: A bank's actual cash reserves can be Q102: Which of the following are all assets Q104: The reserve ratio is equal to: Q105: Suppose a chartered bank has demand deposits Q106: A bank which has assets of $85 Q107: A chartered bank's reserves are: Q108: The desired reserve ratio refers to the
A)a chartered
A)liabilities to both
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