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| Topic: |
Business
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| Number of pages / Number of words: |
8 / 2102 |
Essay's paper body
They are listed as assets to the U.S. treasury but liabilities to the Federal Reserve. The deposits can consist of tax receipts, money borrowed by the public or the sale of bonds (McConnell, 2004). Lastly Federal Reserve notes, which are notes mixed in with currency in response to an increased demand of currency...
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So when the notes are in circulation outside of the Federal Reserve they are counted as a liability, as demand declines these same notes will be retired.
Remember that in open Markets, that the selling and purchasing of securities and bonds. Again this will reduce the Federal Reserve Banks’ reserves...
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