The terms on the right-hand side of the Fed's balance sheet
A)represent the Fed's assets.
B)represent the net worth of the Fed.
C)represent uses of the monetary base.
D)equal the difference between the value of the Fed's assets and the value of its liabilities.

Question

Quizplus · Accepted Answer

The terms on the right-hand side of the Federal Reserve's (Fed's) balance sheet represent uses of the monetary base, not the Fed's assets, net worth, or the difference between its assets and liabilities. The right-hand side details how the monetary base is utilized, such as through loans to banks or the purchase of government securities.

The Terms on the Right-Hand Side of the Fed's Balance