Homework POF Merge-Com Salary of an to Help Seve & El Submit Assuming normal financial and economic conditions, what are the main advantages of a central bank maintaining low-risk short-term assets on its balance sheet? Instructions: In order to receive full credit, you must make a selection for each option. For correct answers, click the option once to place a check mark. For Incorrect answer(s), click the option twice to empty the box A low-risk portfolio removes the Fed from interference in the market determination of liquidity and maturity riskpremie, y reducing riskiness of its portfolio in normal times, the Fed maximizes the ability to counter threats to stability when they arise. y holding low-risk, short maturity Treasuries, the Fed as able to cam high returns to fund operation Holding short term Treasury debt counters the criticism that the Fed interferes in fiscal policy, overtopping te mandate The Fed in able to financially support industries that are critical to economic stability