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Which of the Following Statements Is Correct

Question 160

Multiple Choice

Which of the following statements is correct?


A) The actual reserves of a commercial bank equal its excess reserves minus its required reserves.
B) A bank's liabilities plus its net worth equal its assets.
C) When borrowers repay bank loans, the supply of money increases.
D) A single commercial bank can safely lend a multiple amount of its excess reserves.

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