Typically the Largest Asset Item in the Federal Reserve Banks

question 5

Multiple Choice

Typically the largest asset item in the Federal Reserve Banks' consolidated balance sheet (as illustrated in the book, for April 2013) is:

• A) Loans to commercial banks
• B) Federal Reserve Notes
• C) Treasury deposits
• D) Securities

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Definitions:

Common Good

A concept referring to either policies or infrastructure that benefit all members of a community or society.

External Good

Often misinterpreted; should likely be "external good," relating to positive externalities, benefits received by those not directly involved in a transaction.

Nonrival-in-consumption

A property of a good whereby one person's consumption does not diminish the utility of that good for others.

Consumption

The process by which goods and services are used up by consumers, reflecting the end use of products and services in an economy.