U.S Treasury bill are (n)... a) liability of the U.S government but an asset to the Federal Reserve. b) liability to both the U.S government and the federal reserve. c)asset of the U.U government but a liability to the Federal Reserve. d) part of the networth of the U.S government.

U.S Treasury bill are (n)... a) liability of the U.S government but an asset to the Federal Reserve. b) liability to both the U.S government and the federal reserve. c)asset of the U.U government but a liability to the Federal Reserve. d) part of the networth of the U.S government.

Economics Today and Tomorrow, Student Edition

1st Edition

ISBN:9780078747663

Author:McGraw-Hill

Publisher:McGraw-Hill

Chapter15: The Federal Reserve System And Monetary Policy

Section: Chapter Questions

Problem 1AA

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Concept explainers

Required Reserve and Excess Reserve Analysis

A required reserve is an amount of cash that banks must keep with themselves, which is certain percentage of the deposits made by their customers. Required reserve is a percentage of the bank's deposits that the respective bank must have on each overnight. The percentage rate is set and determined by the nation’s central bank. It is important to have such funds accumulated to meet its uncertain obligations, sudden liabilities and withdrawals. Required reserve is also known as reserve ratio. Reserve ratio is an important tool to control the money supply.

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U.S Treasury bill are (n)...

a) liability of the U.S government but an asset to the Federal Reserve.

b) liability to both the U.S government and the federal reserve.

c)asset of the U.U government but a liability to the Federal Reserve.

d) part of the networth of the U.S government.

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