$$\begin{array} { | l | c | }
\hline { \text { Item in Balance Sheet } } & \text { Amount } \
\hline \text { 1) Treasury Deposits } & \$ 7 \
\hline \text { 2) Reserves of Commercial Banks } & 31 \
\hline \text { 3) Federal Reserve Notes } & 275 \
\hline \text { 4) Loans to Commercial Banks } & 1 \
\hline \text { 5) All Other Assets } & 64 \
\hline \text { 6) Securities } & 255 \
\hline \text { 7) All Other Liabilities and Net Worth } & 7 \
\hline
\end{array}$$ 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 liabilities and net worth would be items 7 and
A) 1, 3, and 5.
B) 2, 4, and 5.
C) 1, 2, and 3.
D) 4, 5, and 6.

Question

$$\begin{array} { | l | c | } 
\hline { \text { Item in Balance Sheet } } & \text { Amount } \
\hline \text { 1) Treasury Deposits } & \$ 7 \
\hline \text { 2) Reserves of Commercial Banks } & 31 \
\hline \text { 3) Federal Reserve Notes } & 275 \
\hline \text { 4) Loans to Commercial Banks } & 1 \
\hline \text { 5) All Other Assets } & 64 \
\hline \text { 6) Securities } & 255 \
\hline \text { 7) All Other Liabilities and Net Worth } & 7 \
\hline
\end{array}$$ 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 liabilities and net worth would be items 7 and
A) 1, 3, and 5.
B) 2, 4, and 5.
C) 1, 2, and 3.
D) 4, 5, and 6.

Quizplus · Accepted Answer

Items 1, 2, and 3 represent the liabilities of the Federal Reserve Banks, as they are all forms of money that the Federal Reserve owes to others. Item 7 represents the net worth, as it is the difference between the assets and the liabilities. Items 4, 5, and 6 represent the assets of the Federal Reserve Banks.

The Table Shows Items and ?Gures Taken from a Consolidated