The Fed's Holdings of Securities Consist Primarily of ________,But Also

question 158

Multiple Choice

The Fed's holdings of securities consist primarily of ________,but also in the past have included ________.

• A)Treasury securities;bankers' acceptances
• B)municipal securities;bankers' acceptances
• C)bankers' acceptances;Treasury securities
• D)Treasury securities;municipal securities

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Definitions:

Promissory Note

A financial document in which one party promises in writing to pay a determinate sum of money to another, either at a fixed or determinable future time or on demand.

Return on Investment

A performance measure used to evaluate the efficiency or profitability of an investment or compare the efficiency of a number of different investments.

Simple Interest

Interest calculated only on the principal amount, or the initial amount of money borrowed or invested, without compounding.

GICs

A financial vehicle in Canada, Guaranteed Investment Certificates offer investors a set return rate over a defined period.