QUESTION 15 Which statement about the Federal Reserve is true? It can issue debt securities It is publicly owned It is overseen by the Executive Branch (the President) and the Legislative Branch (Congress) It lends to U.S. commercial banks through the discount window QUESTION 16 Variable rate demand obligations are tax exempt municipal securities that are permitted to be purchased by money market funds. Why? Because coupons are reset daily or every seven days. Because they contain a put option. Because they have maturities 270 days or less. Because they have short-term maturities. QUESTION 17 Which is not a form of credit enhancement for a credit card ABS? Cash collateral account Subordination Government agency guarantee of timely payment Excess spread