A major asset of the Federal Reserve is U.S. Treasury securities, and the major liability is currency outside banks.

Question

Quizplus · Accepted Answer

The Federal Reserve's balance sheet lists U.S. Treasury securities as a major asset because it purchases these securities as part of its monetary policy operations. The major liability is currency in circulation (currency outside banks), which represents the physical currency issued by the Federal Reserve that is held by the public and non-bank entities.

A Major Asset of the Federal Reserve Is U