Most of the Interest on the Fed's Assets Is

question 301

Multiple Choice

Most of the interest on the Fed's assets is:

• A)used to maintain the buildings and grounds of the 12 regional banks.
• B)used to purchase currency in the foreign exchange market.
• C)returned to the U.S. taxpayers.
• D)shared with banks that are members of the Federal Reserve System.

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Definitions:

Interest Receivable

An accounting term for interest that has been earned but not yet received in cash.

Unearned Service Revenue

Income received by a company for services yet to be performed, treated as a liability until the services are provided.

Supplies Expense

The cost associated with consuming supplies over a specific accounting period, impacting the income statement.

Accrued Interest Expense

The amount of interest that has been incurred but not yet paid during a particular period.