Which of the Following Statements Is Not Correct

question 97

Multiple Choice

Which of the following statements is not correct?

• A)The supply of money decreases when the Bank of Canada buys government securities from households or businesses.
• B)Excess reserves are the amount by which actual reserves exceed desired reserves.
• C)Chartered banks increase the supply of money when they purchase government bonds from households or businesses.
• D)Chartered bank reserves are an asset to chartered banks but a liability to the Bank of Canada.

---

Definitions:

Total Assets

The sum of all assets owned by a company, including both current and non-current assets, as recorded on the balance sheet.

Stockholders' Equity

The residual interest in the assets of a corporation after deducting liabilities, essentially representing the owners’ equity.

Note Receivable

A written promise for the amounts to be received, typically recording a receivable where the individual or entity promises to pay a sum of money at a future date.

Investing Cash Flow

Cash generated or spent on activities related to a company's investments, such as purchasing or selling assets.