Typically the largest asset item in the Federal Reserve Banks' consolidated balance sheet (as illustrated in the book, for April 2016) is
A)loans to commercial banks.
B)Federal Reserve notes.
C)Treasury deposits.
D)securities.

Question

Quizplus · Accepted Answer

The largest asset item on the Federal Reserve Banks' consolidated balance sheet is typically securities, which include U.S. Treasury securities and other financial instruments. These are held by the Fed as part of its monetary policy operations.

Typically the Largest Asset Item in the Federal Reserve Banks