Treasury Bonds Are

question 78

Multiple Choice

Treasury Bonds are

• A)both a store of value and a medium of exchange.
• B)a store of value,but not a medium of exchange
• C)a medium of exchange,but not a store of value.
• D)neither a store of value nor a medium of exchange.

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Definitions:

United States Treasury

A government department responsible for managing federal finances, issuing currency, collecting taxes, and paying bills on behalf of the United States government.

Primary Reserves

Assets that are held by banks that are readily available to meet immediate withdrawal demands, such as cash and deposits with central banks.

Excess Reserves

Funds that banks hold over and above the required minimum reserves specified by central banking authorities, which can be loaned out or invested.

Reserve Requirements

The minimum amount of reserves that banks must hold against deposits, set by central banks to ensure liquidity and control the money supply.