Which of the Following Statements Is FALSE

question 38

Multiple Choice

Which of the following statements is FALSE?

• A)A lease is a contract between two parties: the lessee and the lessor.
• B)Most leases involve little or no upfront payment.
• C)The lessee is the owner of the asset,who is entitled to the lease payments in exchange for lending the asset.
• D)At the end of the contract term,the lease specifies who will retain ownership of the asset and at what terms.

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Definitions:

Required Reserve Ratio

The fraction of deposits that banks are required by law to keep on hand or with the central bank as a reserve.

M1 Money Supply

A category of money supply that includes all physical money like coins and currency, as well as demand deposits and other liquid assets held by the central bank.

Fed

The Federal Reserve System, often referred to as the Fed, is the central banking system of the United States, which oversees the nation's monetary policy by regulating banking institutions, stabilizing the financial system, and managing inflation and employment levels.

Checkable Deposits

Bank account balances that can be withdrawn using checks or electronic debit, typically found in checking accounts.