The Fed's Portfolio of Securities Consists Principally of

question 39

Multiple Choice

The Fed's portfolio of securities consists principally of

• A)municipal bonds.
• B)corporate bonds.
• C)U.S. Treasury obligations.
• D)obligations of foreign governments.

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Definitions:

Net Income

The net income of a company, which is the remaining amount after deducting all expenses and taxes from the total revenue.

Warranty Expense

Warranty expense is the estimated cost a company expects to incur for repairing, replacing, or compensating for defective products under warranty.

Estimated Warranty Liability

A provision in the financial statements estimating the cost a company expects to incur under its product warranty commitments.

Customer Warranties

Promises made by sellers to buyers to repair or replace products that fail within a certain period of time after sale.