Which of the following statements is most correct?
A. Reserves are assets of the central bank and liabilities of the commercial banks.
B. Reserves are assets of the commercial banks and liabilities of the central bank.
C. Reserves are assets of the central bank and liabilities of the U.S. Treasury.
D. Reserves are liabilities of the commercial banks and assets of the U.S. Treasury.
Answer: B
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Currency traders expect the value of the dollar to fall. What effect will this have on the demand for dollars and the supply of dollars in the foreign exchange market?
A) Demand for dollars will increase, and supply of dollars will increase. B) Demand for dollars will decrease, and supply of dollars will decrease. C) Demand for dollars will increase, and supply of dollars will decrease. D) Demand for dollars will decrease, and supply of dollars will increase.
The U.S. federal budget is determined exclusively by Congress
a. True b. False Indicate whether the statement is true or false