US Treasury Deposits at the Fed Are ________ for the Fed

question 187

Multiple Choice

U.S. Treasury deposits at the Fed are ________ for the Fed but ________ for the Treasury. Thus an increase in U.S. Treasury deposits ________ the monetary base.

• A)a liability;an asset;increases
• B)a liability;an asset;decreases
• C)an asset;a liability;increases
• D)an asset;a liability;decreases

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Definitions:

Absolute Advantage

The ability of an individual, company, or country to produce a good or provide a service more efficiently than competitors, using the same amount of resources.

Economic Basis

refers to the foundational activities, sectors, or resources upon which an economy is built and sustains its growth.

Absolute Advantage

The ability of an individual, company, or country to produce a good or service more efficiently than competitors.

Specialization

The process of focusing on and becoming expert in a particular subject or skill, often resulting in increased efficiency and productivity.