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All of the Following Statements,except One,are Correct

Question 35

Multiple Choice

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.

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