The securities held as assets by the Federal Reserve Banks consist mainly of
A) corporate bonds.
B) Treasury bills, Treasury notes, and Treasury bonds.
C) common stock.
D) certiﬁcates of deposit.

Question

Quizplus · Accepted Answer

The securities held as assets by the Federal Reserve Banks mainly consist of Treasury bills, Treasury notes, and Treasury bonds. These are considered the safest and most liquid assets available. The Federal Reserve also holds some mortgage-backed securities and a small amount of foreign currency. However, it generally does not hold corporate bonds or common stock, and only accepts certificates of deposit from member banks in certain circumstances.

The Securities Held as Assets by the Federal Reserve Banks