Which of the Following Statements Is Not Correct

question 97

Multiple Choice

Which of the following statements is not correct?

• A)The supply of money decreases when the Bank of Canada buys government securities from households or businesses.
• B)Excess reserves are the amount by which actual reserves exceed desired reserves.
• C)Chartered banks increase the supply of money when they purchase government bonds from households or businesses.
• D)Chartered bank reserves are an asset to chartered banks but a liability to the Bank of Canada.

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Definitions:

Organic Molecule

A compound containing carbon atoms bonded to hydrogen atoms and often other elements, fundamental to the chemistry of life.

Vitamin

Organic compounds required in small amounts for essential bodily functions and must be obtained through the diet as the body cannot produce them sufficiently.

Water Molecule

A molecule consisting of two hydrogen atoms and one oxygen atom, forming the basis of all known forms of life and many solvents.

Polar Covalent Bond

Covalent bond in which atoms do not share their electrons equally.