One of the Main Liabilities on the Fed's Balance Sheet

question 58

Multiple Choice

One of the main liabilities on the Fed's balance sheet is reserves. Which of the following is the best definition of that item?

• A)Reserves represent foreign currencies held at the Fed.
• B)Reserves are deposits that banks hold at the Fed.
• C)Reserves represent gold and other precious metals held at the Fed.
• D)Reserves represent loans that the Fed has made to other countries.
• E)None of these is an appropriate definition.

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Definitions:

Apps

Short for applications, these are software programs designed to perform specific tasks or functions on electronic devices.

Windows

An operating system developed by Microsoft that provides a graphical interface for personal computers, allowing users to manage files and run software applications.

Shortcut Menu

A context-sensitive menu that appears when a user right-clicks within a graphical interface, offering a list of options relevant to the current context or selection.

Resize

The action or process of changing the dimensions (height, width) of an image, window, or other graphical elements.