Economics · Monetary Theory and Aggregates
Which of the following statements regarding macroeconomics and money supply is INCORRECT?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Vault cash held by commercial banks is included as part of the money supply in circulation among the public.✓
- 2In Time Deposits, funds can typically be withdrawn only after maturity or by incurring a penalty.
- 3The Money Multiplier represents the ratio of the total money supply to the reserve money.
- 4Fiat money is issued without the backing of an equivalent physical commodity like gold or silver.
Correct answer
Vault cash held by commercial banks is included as part of the money supply in circulation among the public.
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