Federal reserve notes held in bank vaults are the liability

Assignment Help Financial Management

Reference no: EM131050436

1. Federal Reserve notes held in bank vaults are the liability or obligation of

(a) the Fed.

(b) the Treasury.

(D) None of the above

2. When the New York Fed sells Treasury securities to a securities dealer,

(a) the depository institutions deposits in the Fed decrease.

(b) the depository institutions deposits in the Fed increase.

(d) both depository institutions deposits in the Fed decrease and the deposit balance of the security dealer in its bank decreases above.

Reference no: EM131050436

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