US Treasury Deposits at the Fed Are ________ for the Fed

question 187

Multiple Choice

U.S. Treasury deposits at the Fed are ________ for the Fed but ________ for the Treasury. Thus an increase in U.S. Treasury deposits ________ the monetary base.

• A)a liability;an asset;increases
• B)a liability;an asset;decreases
• C)an asset;a liability;increases
• D)an asset;a liability;decreases

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Definitions:

Market

A venue or mechanism where buyers and sellers engage in the exchange of goods, services, or financial instruments.

LIFO Inventory

An inventory valuation method where the last items added to inventory are the first ones to be used or sold.

Merchandise Inventory

Goods that a company holds for the purpose of selling them to customers, often a significant asset on the balance sheet for retailers.