On the Fed's balance sheet, assets include
A) reserves of depository institutions and mortgage-backed securities.
B) U.S. government securities and mortgage-backed securities.
C) currency and reserves of depository institutions.
D) currency and mortgage-backed securities.

Question

Quizplus · Accepted Answer

The Federal Reserve's assets primarily include U.S. government securities and mortgage-backed securities. These are the instruments the Fed buys and holds to conduct monetary policy, such as through open market operations.

On the Fed's Balance Sheet, Assets Include