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

Question

Quizplus · Accepted Answer

The reserves of commercial banks are the largest liability item on the Federal Reserve Banks' consolidated balance sheet, as they represent the deposits that commercial banks hold at the Federal Reserve.

The Largest Liability Item in the Federal Reserve Banks' Consolidated