In the United States, all money is essentially the debt of the Fed, commercial banks, and thrift institutions.

Question

Quizplus · Accepted Answer

The Federal Reserve, or Fed, is responsible for regulating the money supply in the United States. All money created by the Fed, as well as commercial banks and thrift institutions, is essentially debt. This means that when money is created, someone owes the issuer of that money the amount created. In the case of the Fed, this debt is owed to the government and ultimately the taxpayers.

In the United States, All Money Is Essentially the Debt