Describe the Colliding Molecules in the Figure Below

question 24

Essay

Describe the colliding molecules in the figure below.

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Definitions:

U.S. Government Securities

Financial instruments issued by the United States Department of the Treasury to finance federal government spending.

Clear

in an economic or financial context often means to settle a transaction or complete a trade or payment process.

Federal Reserve's Assets

These are financial assets held by the Federal Reserve Bank, including government securities, mortgage-backed securities, and loans to banks.

Excess Reserves

The capital reserves held by a bank or financial institution in excess of what is required by regulators, creditors, or internal controls.