$$\begin{array} { | l | r | }
\hline { \text { Item in Balance Sheet } } & \text { Amount } \
\hline \text { 1) Treasury Deposits } & \$ 7 \
\hline \text { 2) Reserves of Commercial Banks } & 31 \
\hline \text { 3) Federal Reserve Notes } & 275 \
\hline \text { 4) Loans to Commercial Banks } & 1 \
\hline \text { 5) All Other Assets } & 64 \
\hline \text { 6) Securities } & 255 \
\hline \text { 7) All Other Liabilities and Net Worth } & 7 \
\hline
\end{array}$$ The table shows items and ?gures taken from a consolidated balance sheet of the 12 Federal Reserve Banks. All ?gures are in billions of dollars. In this balance sheet, the assets would be items 5 and
A) 1 and 2.
B) 2 and 3.
C) 3 and 4.
D) 4 and 6.

Question

$$\begin{array} { | l | r | } 
\hline { \text { Item in Balance Sheet } } & \text { Amount } \
\hline \text { 1) Treasury Deposits } & \$ 7 \
\hline \text { 2) Reserves of Commercial Banks } & 31 \
\hline \text { 3) Federal Reserve Notes } & 275 \
\hline \text { 4) Loans to Commercial Banks } & 1 \
\hline \text { 5) All Other Assets } & 64 \
\hline \text { 6) Securities } & 255 \
\hline \text { 7) All Other Liabilities and Net Worth } & 7 \
\hline
\end{array}$$ The table shows items and ?gures taken from a consolidated balance sheet of the 12 Federal Reserve Banks. All ?gures are in billions of dollars. In this balance sheet, the assets would be items 5 and
A) 1 and 2.
B) 2 and 3.
C) 3 and 4.
D) 4 and 6.

Quizplus · Accepted Answer

In a consolidated balance sheet of the Federal Reserve Banks, assets include all items except for "All Other Liabilities and Net Worth" (item 7). Therefore, the assets in this balance sheet would be items 1, 2, 3, 4, 5, and 6. Option D includes items 4 and 6, which corresponds to loans to commercial banks and securities, respectively.

The Table Shows Items and ?Gures Taken from a Consolidated