choose the correct answer: A) Federal Reserve Notes are: an asset of the Federal
ID: 1202089 • Letter: C
Question
choose the correct answer:
A) Federal Reserve Notes are:
an asset of the Federal Reserve.
an asset of the U.S. Treasury.
a liability of the U.S. Treasury.
a liability of the Federal Reserve.
B) Money is created in the banking system when banks:
lend out their excess reserves.
collect payments on loans they have made.
earn interest income on the loans they have made.
clear check.
C) The major earning asset of banks is:
savings deposits.
checking deposits.
reserves.
loans and securities.
an asset of the Federal Reserve.
an asset of the U.S. Treasury.
a liability of the U.S. Treasury.
a liability of the Federal Reserve.
Explanation / Answer
A. a liability of the Federal Reserve.
B. lend out their excess reserves.
C. loans and securities
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