Which of the Following Is Not True of Federal Reserve

question 116

Multiple Choice

Which of the following is not true of Federal Reserve notes?

• A)They are fiat money.
• B)They are a liability of the Fed.
• C)They are redeemable for other Federal Reserve notes.
• D)They are redeemable for gold.
• E)They are counted as currency in the money supply

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Definitions:

Industry Average

A benchmark or standard calculated by taking the average of a specific metric across multiple companies within the same industry, useful for comparative analysis.

Adjusting Entry

An accounting record made to update the balances of accounts at the end of an accounting period before the preparation of financial statements.

Sales

Transactions involving the transfer of goods or services from a seller to a buyer in exchange for money or other considerations.

Days' Sales in Receivable

A financial metric that calculates the average number of days it takes for a company to collect payments after a sale has been made.