Which of the Following Statements Is Correct

question 221

Multiple Choice

Which of the following statements is correct?

• A) Excess reserves may be found by subtracting actual from required reserves.
• B) The supply of money declines when the public purchases securities from commercial banks.
• C) Commercial bank reserves are a liability to commercial banks but an asset to Federal Reserve Banks.
• D) Commercial banks reduce the supply of money when they purchase government bonds from the public.

---

Definitions:

Advances

Progress or development in various fields or aspects, such as technology, science, medicine, or social practices, contributing to overall improvement or innovation.

Indo-European

Indo-European refers to a large family of related languages spread across Europe and Asia, believed to be derived from a common ancestral language spoken thousands of years ago.

Oceanic

Pertaining to the ocean; involving or situated in the ocean.

Samoan

Pertaining to the people, language, or culture of Samoa, a country comprising islands in the central South Pacific.