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.

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Definitions:

Disclosure

The action of revealing or providing access to previously unknown or concealed information.

Consumer Protection

Laws and regulations designed to ensure the rights of consumers as well as fair trade, competition and accurate information in the marketplace.

Stop-Payment Order

A request made to a bank by an account holder not to pay a check or payment that has been issued but not yet cashed or withdrawn.

Valid

Legally binding and enforceable, meeting all necessary legal formalities and requirements.