Question

1a. To which of the following does the Fed, as used in the United States, refer?...

1a.

To which of the following does the Fed, as used in the United States, refer?

The country’s central bank
The Treasury Department
The federal government
The Federal Deposit Insurance Corporation

b.

If a bank’s assets and its liabilities are equal, the bank is said to be _______.

insolvent
in balance
maximizing its profit

fully utilizing its resources

c.

The possibility that borrowers will not be able to repay their loans on time or in full is known as ________ risk.

credit
default
market
liquidity

d.

Transaction deposits include which of the following?

Demand deposits
Saving deposits
Time deposits
Certificates of deposit

e.

Assets of commercial banks can include which of the following?

Cash, securities, and loans
Deposits, securities, and loans
Net worth and bank borrowing
Deposits and net worth

Homework Answers

Answer #1

A) the federal reserve of the United States is the central bank of the country because it has the function of regulating the financial activities of commercial banks as well as a sole control over the money supply

B) this is a situation in which the bank is said to be in balance. This is because it is maintained under the balance sheet where the assets and liabilities are equal to each other

C) This is called the default risk borrowers are likely to default on the loan acquired

D) Transaction deposits include the deposits which can be readily taken out as cash. This includes demand deposits and other checkable deposits.

E) cash securities and loans.

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