Which of the Following Statements Is NOT True

question 18

Multiple Choice

Which of the following statements is NOT true?

• A)The supply of money decreases when the Federal Reserve Banks buy government securities from households or businesses.
• B)Excess reserves are the amount by which actual reserves exceed required reserves.
• C)Commercial banks increase the supply of money when they purchase government bonds from households or businesses.
• D)Commercial bank reserves are an asset to commercial banks but a liability to the Federal Reserve Banks.

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Definitions:

Jaundice

A medical condition characterized by yellowing of the skin and the whites of the eyes, caused by the accumulation of bilirubin in the blood.

Eosinophil Count

A measure of the number of eosinophils, a type of white blood cell, in the blood, often used to diagnose allergic reactions or parasitic infections.

Parasitic Worm

An organism that lives on or in a host organism and gets its food at the expense of its host, often causing disease.

Bone Marrow

A soft, spongy tissue inside bones that produces blood cells, including red blood cells, white blood cells, and platelets.