Which of the following statements is most correct?
A. Reserves are assets of the central bank and liabilities of the U.S. Treasury.
B. Reserves are assets of the central banks and liabilities of the commercial banks.
C. Reserves are liabilities of the commercial banks and assets of the U.S. Treasury.
D. None of the above.
Answer:D
Which of the following statements is most correct?
A. Reserves are assets of the central bank and liabilities of the U.S. Treasury. B. Reserves are assets of the central banks and liabilities of the commercial banks. C. Reserves are liabilities of the commercial banks and assets of the U.S. Treasury. D. None of the above.