On the Fed's Balance Sheet, Assets Include

question 242

Multiple Choice

On the Fed's balance sheet, assets include

• A) depository institutions deposits at the Federal Reserve and loans to depository institutions.
• B) Federal Reserve notes and loans to depository institutions.
• C) U.S. government securities and loans to depository institutions.
• D) Federal Reserve notes and depository institutions' deposits at the Federal Reserve.

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Definitions:

Unsecured Bond

A bond not backed by collateral, relying on the issuer's creditworthiness.

Indenture

A formal legal agreement, contract, or document between two parties, especially one detailing the terms and conditions of a bond or debenture.

Debenture

A type of debt instrument that is not secured by physical assets or collateral but is backed only by the general creditworthiness and reputation of the issuer.

Mortgage Bond

A bond secured by real estate.