All of the following statements,except one,are correct.Which is the exception?
A) A commercial bank's total reserves are equal to its excess reserves plus its target reserves.
B) A bank's assets plus its net worth equal its liabilities.
C) When a commercial bank gives a loan it creates demand deposits.
D) A single commercial bank can safely lend only an amount up to the value of its excess reserves.
E) If a bank transaction were to decrease the value of one of its assets,then either some other asset would increase in value or one of its liabilities would decrease in value.
Correct Answer:
Verified
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