Which of the Following Statements Is False

question 56

Multiple Choice

Which of the following statements is false?

• A) The Fed has the legal authority to create money out of thin air.
• B) There is a direct relationship between the money supply and the required reserve ratio.
• C) The Fed can cause money to disappear into thin air.
• D) The federal funds market is a market in which banks can borrow money from other banks.

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Definitions:

Thesis Sentence

A statement in a piece of writing that introduces the main argument or point of view of the author.

Sign Post

An indication or guide that provides direction or information, either literally in the form of a physical marker or metaphorically in speech or writing.

Complete Sentence

A group of words that expresses a complete thought, typically containing a subject and a predicate.

Audience-centered

An approach to communication that tailors the message to the preferences, interests, and expectations of the intended audience.