Economics · Macroeconomics
Which of the following statements regarding money and banking concepts is INCORRECT?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Fiat money is issued without any backing of an equivalent amount of gold or silver.
- 2The Money Multiplier is the ratio of the total money supply to the reserve money.
- 3Vault cash held by commercial banks is directly included as a part of the money supply held by the public.✓
- 4In Time Deposits, money can generally be withdrawn only after maturity or with a penalty before maturity.
Correct answer
Vault cash held by commercial banks is directly included as a part of the money supply held by the public.
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