Which of the following is true of bank reserves held at the Fed? ...

[luvbio]

Which of the following is true of bank reserves held at the Fed?
 
  A) These reserves are a liability to the bank and an asset to the Fed.
  B) These reserves are a liability to both the bank and the Fed.
  C) These reserves are an asset to the bank and a liability to the Fed.
  D) These reserves are an asset to both the bank and the Fed.

Question 2

The precautionary demand for money is when people hold money
 
  A) as a medium of exchange. B) for the interest it yields.
  C) to meet unplanned expenditures. D) as a store of value.

[rleezy04]

Answer to Question 1

C

Answer to Question 2

C