2. Federal Reserve notes held in bank vaults are the liability or obligation of (Points : 3)

(a) the Fed. (b) the Treasury. (c) the bank. (D) None of the above

Question 3. When the New York Fed sells Treasury securities to a securities dealer, (Points : 3)

(a) the depository institutions deposits in the Fed decrease. (b) the depository institutions deposits in the Fed increase. (c) the deposit balance of the security dealer in its bank decreases. (d) both depository institutions deposits in the Fed decrease and the deposit balance of the security dealer in its bank decreases above.