An Increase in Treasury Deposits at the Fed Causes

question 5

Multiple Choice

An increase in Treasury deposits at the Fed causes

• A)the monetary base to increase.
• B)the monetary base to decrease.
• C)Fed assets to increase but has no effect on the monetary base.
• D)Fed assets to decrease but has no effect on the monetary base.

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Definitions:

Long-Term Liability

Obligations or debts due in more than one year, reflecting a company's financing activities and including loans, bonds payable, and lease obligations.

GAAP Requirements

The standards or guidelines for financial accounting and reporting that accountants are required to follow, known as Generally Accepted Accounting Principles.

Vacation Pay

Compensation paid to employees for days they are entitled to take off work but choose to work instead or as a benefit for days they are allowed not to work.

Sick Pay

Compensation provided by an employer to an employee who is absent from work due to illness.