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.

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Definitions:

Organic Molecules

Compounds mainly containing carbon and hydrogen, often including oxygen, nitrogen, and other elements, foundational to life.

Cyanobacteria

Photosynthetic microorganisms that are important in ecological systems for oxygen production and as a part of the nitrogen cycle.

Fossilized Eukaryotes

Remains or imprints of ancient organisms with complex cells, preserved in rock.

Cyanobacteria

A phylum of bacteria that obtain their energy through photosynthesis, often referred to as "blue-green algae."