Which of the following statements is false?

Question

Quizplus · Accepted Answer

All three statements are correct. The first statement reflects the fact that a portion of primary deposits tends to be held as cash by customers, limiting the amount that can be lent out and multiplied by banks. The second statement correctly defines the monetary base as currency in circulation and bank reserves. The third statement highlights that open market operations are solely determined by the Federal Reserve, unlike other factors that may affect reserves such as customer withdrawals or deposit inflows.

Which of the Following Statements Is False