The currency outstanding account on the Fed's balance sheet
A)is a liability.
B)is an asset.
C)represents chiefly the coins minted and issued by the U.S. Treasury.
D)includes only that currency held by commercial banks.

Question

Quizplus · Accepted Answer

The currency outstanding account on the Fed's balance sheet is considered a liability because it represents the amount of currency (paper money and coins) that has been issued into circulation and is owed back to the holders.

The Currency Outstanding Account on the Fed's Balance Sheet