Take the following as truth: A direct loan financing account may hold uninvested balances to bridge transactions that are integral to its operations, such as when it borrows from Treasury to disburse direct loans prior to the time of disbursement; it earns interest on these balances to reflect the time value of money and thereby finance the interest it pays on its debt to Treasury.
Then the following statement: "When one borrows from a treasury it will earn interest on the balance. " is true, false, or inconclusive?
Answer: True