Which of the Following Statements About Deposit Money Is True

question 76

Multiple Choice

Which of the following statements about deposit money is true?

• A)The quantity of fiat money in the Canadian economy far exceeds the quantity of deposit money.
• B)Deposit money can legally be created solely by the Bank of Canada.
• C)Deposit money is the paper money or coinage that is decreed by the government to be accepted as legal tender.
• D)Deposit money is recorded as an asset on the balance sheet of a commercial bank.
• E)The quantity of deposit money in the Canadian economy far exceeds the quantity of fiat money in circulation.

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