When the Fed prints and issues bills, it creates:

Question

Quizplus · Accepted Answer

When the Federal Reserve (the Fed) prints and issues bills, it is essentially creating money. This process does not create a real asset, a financial asset for itself, or a financial liability for the holder of the IOU in the context of the choices provided. Money issued by the Fed is recognized as a medium of exchange, a unit of account, and a store of value, which are the primary functions of money.

When the Fed Prints and Issues Bills, It Creates