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Which of the Following Is False

Question 35

Multiple Choice

Which of the following is false?


A) Whenever excess reserves appear, banks will convert the non-interest earning reserves into other interest-earning assets.
B) Credit cards are not included in any measures of the money supply.
C) Paper currency is the only form of legal tender.
D) Economists are not completely in agreement on what constitutes money for all purposes.
E) M1 does not include savings accounts.

Correct Answer:

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