Bonds Are Assets for the Fed and Part of High-Powered

question 122

True/False

Bonds are assets for the Fed and part of high-powered money.

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Definitions:

Future Bond Issue

A planned issuance of bonds by a corporation or government in the future to raise capital.

Dividends

Distributions of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders.

Treasury Stock

Shares of a company's own stock held by the company itself, often bought back from shareholders and not considered when calculating earnings per share or dividends.

Retained Earnings

The portion of a company's profits that is not distributed to shareholders as dividends but is kept by the company for reinvestment.