Multiple Choice
Which of the following statements is false?
A) The multiplying capacity of primary deposits is hindered by cash leakages from the banking system.
B) The monetary base is defined as bank reserves plus currency held by the nonbank public.
C) In contrast to the other transactions that affect reserves in the banking system, open market operations are entirely at the initiative of the Federal Reserve.
D) All the above statements are correct.
Correct Answer:
Verified
Correct Answer:
Verified
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