The Largest Liability Item in the Federal Reserve Banks' Consolidated

question 39

Multiple Choice

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

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

---

Definitions:

Consumer Safety

Refers to the efforts and policies that protect consumers from products, services, or practices that may cause harm.

Principal-Agent Problem

A conflict in priorities between a person or group making decisions on behalf of another person or group.

Political Corruption

The use of powers by government officials for illegitimate private gain.

Logrolling

A practice in politics where two or more parties agree to vote for each other's proposed legislation or interests.