Which of the Below Statements Is FALSE

question 24

Multiple Choice

Which of the below statements is FALSE?

• A) Interest rates do not influence the change in the money supply.
• B) If banks were to keep some excess reserves, they would make fewer new loans and generate fewer deposits at other banks, which would affect the amount of M₁ that the Fed's purchase of securities would generate.
• C) One of the important factors in a bank's decisions about excess reserves is the level of market interest rates.
• D) The level of market rates shapes decisions about cash holdings.

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Definitions:

Lens

A curved piece of glass or other transparent material that focuses or disperses light rays, used in glasses and cameras.

Fovea

The central focal point in the retina of the eye, around which the cones are densely packed for high visual acuity.

Retina

A layer at the back of the eyeball containing cells that are sensitive to light and trigger nerve impulses that pass via the optic nerve to the brain, where a visual image is formed.

Thalamus

A part of the brain that acts as a principal relay station for transmitting sensory information.