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.

Question

Quizplus · Accepted Answer

When the Bank of Canada buys government securities, it increases the money supply by injecting money into the economy.

Which of the Following Statements Is Not Correct