Most of the Fed's liabilities are in the form of:

Question

Quizplus · Accepted Answer

Federal Reserve notes, also known as currency, make up the majority of the Fed's liabilities. This is because the Fed is responsible for regulating the money supply and controlling inflation, and currency is one of the main ways that people conduct transactions and hold wealth. Checkable deposits and U.S. Treasury deposits are also part of the Fed's liabilities, but they are much smaller in terms of total value compared to Federal Reserve notes. Loans to member banks and certificates of deposit are assets for the Fed, not liabilities.

Most of the Fed's Liabilities Are in the Form Of