The assets of the Fed include those items which the Fed pays money, when the fed purchases the government securities it becomes the asset of the Fed. The loans given by the Fed to the commercial banks is also the assets, the currency cannot be the asset of the Fed. The currency is print by the treasury department so it is not the asset of the Fed.
Ans: Mortgage backed securities.
THIS Question! I pt Which of the following is an asset of the Fed? O A....
The predominate asset class on the Balance Sheet of the Federal Reserve Banks is: A. Reserves of Depository Institutions B. Gold and Foreign Currency held C. Currency in circulation D. Vault Cash of Depository Institutions E. U.S. Treasury Securities
What are the Fed's three policy tools? The Fed's three policy tools are A. banking regulations, last resort loans, and the purchase of foreign securities O B. last resort loans, open market operations, and the printing of money O C. open market operations, the required reserve ratio, and the printing of money O D. open market operations, last resort loans, and the required reserve ratio The required reserve ratio is the O A. minimum amount of currency that banks are...
This Question: 1 pt Which of the following is the most liquid asset? O A. currency O B. shares of stock O C. short-term treasury bonds O D. small denomination time deposits Click to select your answer
1) The power within the Federal Reserve was effectively transferred to the Board of Governors by Select one: A. Supreme Court decisions in the 1960s. B. the Treasury-Federal Reserve Accord of 1951. C. the Depository Institutions Deregulation and Monetary Control Act of 1980. D. the Federal Reserve Act of 1935. 2) The monetary base consists of Select one: A. government securities held by the Fed and discount loans. B. currency in circulation and reserves. C. government securities held by the...
1. Describe how the balance sheet of the Fed is affected under each of these scenarios (point out changes to both assets and liabilities) and defend your answer: (a) The Fed sells S1 million dollar's worth of government bonds to banks. (b) $1 million dollar's worth of mortgage-backed securities held by the Fed expire and are paid in full by the issuers of those securities (c) S1 million dollar's worth of mortgage-backed securities held by the Fed expire and only...
Which of the following is not a function of the Fed? a. to serve as a fiscal agent (bank) for commercial banks. b. to hold depository institutions' reserve. c. to clear the checks for member banks. d. to borrow money from the banks
Question Help Consider a world in which there is no currency and depository Institutions issue only transactions deposits and desire to hold no es reserves the required reserveratois 25 percent The central bank sels 51.09 billion in government securities This results in the money supply of | billion (Enter your response rounded to two decimal places)
Suppose that the economy is shown to the right. This economy is currently experiencing O A. a recessionary gap. O B. an inflationary gap. O C. deflation. LRAS SRAS O D. crowding out Using the line drawing tool, draw and label the fiscal policy correction that would bring the economy to full employment GDP Properly label this line. Carefully follow the instructions above, and only draw the required objects AD 2 4 6810 12 14 16 18 20 Real GDP...
Which of the following is a depository institution? O A. Manulife Securities O B. Capital One Bank O c. Bank of Nova Scotia OD. RBC Insurance
1.The Fed purchases $100,000 of U.S. government securities from One Bank. Assuming the desired reserve ratio is 10 percent, banks loan all excess reserves, and the currency drain is 20 percent, how much does the quantity of money increase? A. $1,000,000 B. $10,000,000 C. $1,100,000 D. $900,000 E. $100,000 2.A bank maximizes its stockholders' wealth by ______. A. colluding with other banks to keep interest rates high colluding with other banks to keep interest rates high B. lending for long...