Which of the Following Statements Is False

question 56

Multiple Choice

Which of the following statements is false?

• A) The Fed has the legal authority to create money out of thin air.
• B) There is a direct relationship between the money supply and the required reserve ratio.
• C) The Fed can cause money to disappear into thin air.
• D) The federal funds market is a market in which banks can borrow money from other banks.

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Definitions:

Diabetes Mellitus

A metabolic disorder characterized by high blood sugar levels over a prolonged period, resulting from defects in insulin secretion, insulin action, or both.

Frequent Urination

A condition characterized by the need to urinate more often than usual, possibly indicating a medical issue.

Exophthalmos

A condition characterized by a noticeable protrusion of the eyeballs, often associated with thyroid disease.

Hyperthyroidism

A condition characterized by an overproduction of thyroid hormones, leading to symptoms such as increased metabolism, weight loss, and rapid heartbeat.