Which of the Following Statements Is False

question 17

Multiple Choice

Which of the following statements is false?

• A)The process of channeling savings into investment through the use of a financial institution or intermediary results in the creation of one type of financial asset and one type of financial liability.
• B)During the early years of the history of the United States, foreigners purchased significant volumes of federal government securities.
• C)The single most important use of funds raised in the credit markets is by the household sector.
• D)All of the above statements are false.

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Definitions:

Equilibrium Price

The market price at which the quantity of a good or service supplied is equal to the quantity demanded.

Maximum Price

A price ceiling set by a governing body, above which a particular good or service cannot legally be sold.

Economic Impact

The effect of an event, policy, or market change on the economy, which can include impacts on employment, income levels, and economic growth.

Routine Maintenance

Routine maintenance involves regular and basic upkeep to maintain equipment, systems, or facilities in operational condition, preventing major failures or breakdowns.