Which of the Following Statements Is NOT True

question 9

Multiple Choice

Which of the following statements is NOT true?

• A) The purchase of government bonds from the public increases the money supply.
• B) Monetary policy in the euro area is set by the Governing Council of the European Central Bank.
• C) When the central bank sells government bonds to the public, the money supply decreases.
• D) Monetary policy in the UK is set by the Chancellor of the Exchequer in consultation with the Bank of England.

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Definitions:

Intentional Acts

Actions undertaken with a specific goal or purpose in mind, as opposed to accidents or unintentional outcomes.

Agency by Ratification

This occurs when a principal approves and accepts the actions of someone who acted without authority, thereby giving those actions legitimacy and creating an agency relationship retrospectively.

Doctrine

A belief or set of beliefs held and taught by an organization, especially a religious or political one.