Which of the Following Is the Largest Component of the Assets

question 8

Multiple Choice

Which of the following is the largest component of the assets of the Federal Reserve?

• A)U.S.Treasury deposits
• B)U.S.government securities
• C)Foreign exchange
• D)Time deposits
• E)Checkable deposits

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Definitions:

Returns to Scale

A concept in economics that describes how the output of a firm changes as all its inputs are increased proportionally.

Short Run

A period in economics during which at least one factor of production is fixed, limiting the adjustment processes of the economy.

Production Function

A mathematical representation of the relationship between inputs used in production and the output generated.

Returns to Scale

The rate at which output increases as inputs are proportionally increased in the production process.