On the Fed's Balance Sheet, the Fed's Holdings of Foreign

question 11

Multiple Choice

On the Fed's balance sheet, the Fed's holdings of foreign exchange reserves

• A)is an asset.
• B)is a liability.
• C)represents promises by the Fed to make loans to foreign governments.
• D)consists of gold bars.

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Definitions:

Isoquant Map

Graph combining a number of isoquants, used to describe a production function.

Marginal Returns

The additional output gained from increasing one unit of an input while keeping other inputs constant.

Output

The total amount of goods or services produced by a firm or country within a specific period.

Marginal Rate

The rate at which one variable changes with respect to a small change in another variable, often used in the context of taxation.