Primary Liabilities of the Federal Reserve Include

question 61

Multiple Choice

Primary liabilities of the Federal Reserve include

• A)Federal Reserve notes.
• B)U.S.government securities.
• C)loans to banks.
• D)reserve deposits by banks.
• E)Both a and d

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Definitions:

Liability

The state of being responsible for something, especially in terms of a legal or financial obligation.

Right of Recourse

The legal right to demand compensation or payment from a third party after fulfilling an obligation, especially in financial transactions.

Discharge

(1) The termination of an obligation, such as occurs when the parties to a contract have fully performed their contractual obligations. (2) The termination of a bankruptcy debtor’s obligation to pay debts.

Negotiable Instrument

A written document guaranteeing the payment of a specific amount of money, either on demand or at a set time, to the person possessing it.