Which One of the Following Statements Is Most True

question 43

Multiple Choice

Which one of the following statements is most true?

• A) Any central bank purchase of assets automatically results in an increase in the domestic money supply, while any central bank sale of assets automatically causes the money supply to decline.
• B) Any central bank purchase of assets results in an increase in the domestic money supply, while any central bank sale of assets causes the money supply to decline.
• C) Any central bank purchase of assets automatically results in a decrease in the domestic money supply, while any central bank sale of assets automatically causes the money supply to decline.
• D) Any central bank purchase of assets automatically results in a decrease in the domestic money supply, while any central bank sale of assets automatically causes the money supply to increase.
• E) Any central bank purchase of assets automatically results in an increase in the domestic money supply, while any central bank sale of assets does not necessarily affect the money supply.

---

Definitions:

Lifestyle Ventures

Businesses started primarily to fulfill the personal goals and interests of the founder rather than to achieve high financial growth.

Advantages

Benefits or favorable aspects associated with a particular choice, action, or decision.

Disadvantages

The negative aspects or conditions that can hinder success or efficiency.

Paradoxical Conflict

A situation involving two opposite ideas or requirements that seem impossible but are potentially solvable or manageable.