When the Fed receives an inflow of Federal Reserve notes, its
A) assets rise.
B) liabilities decline.
C) liabilities increase.
D) assets decline.

Name: When the Fed receives an inflow of Federal Reserve notes, its A) assets rise. B) liabilities decline. C) liabilities increase. D) assets decline.
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Question

Quizplus · Accepted Answer

When the Fed receives an inflow of Federal Reserve notes, it reduces its liabilities because these notes are considered a liability on the Fed's balance sheet.

When the Fed Receives an Inflow of Federal Reserve Notes