Collateral is required against each of the following liabilities except ________. A) securities sold under agreement to repurchase B) borrowings from the Federal Reserve discount window C) U.S. Treasury securities D) public deposits owned by the U.S. Treasury E) Federal Home Loan Bank advances

Question

Quizplus · Accepted Answer

Collateral is not required for U.S. Treasury securities when they are simply being held or issued, as they are direct obligations of the U.S. government. The other options typically involve borrowing or obligations that require collateral to secure the transaction or deposit.

Collateral Is Required Against Each of the Following Liabilities except