U.S. Treasury deposits at the Federal Reserve Banks are:

Question

Quizplus · Accepted Answer

The U.S. Treasury deposits at the Federal Reserve Banks are considered a liability for the Federal Reserve Banks because they owe the Treasury the full amount deposited. However, for the U.S. Treasury, these deposits are considered an asset because they can withdraw or use these funds when needed. Therefore, the correct choice is C, as it correctly identifies the liability-asset relationship between the Federal Reserve Banks and the U.S. Treasury.

US Treasury Deposits at the Federal Reserve Banks Are