Multiple Choice
Holdings of U.S.Treasury securities are classified on a DI's balance sheet as
A) assets,because U.S.Treasury securities are default risk-free.
B) liabilities,because the DI must pay cash in order to acquire the securities.
C) assets,because securities holdings represent a use of funds for investment.
D) liabilities,because the Treasury securities must be pledged as collateral against discount window borrowing.
Correct Answer:
Verified
Correct Answer:
Verified
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