The largest liability item in the Federal Reserve Banks' consolidated balance sheet (as illustrated in the book, for April 2013) is:
A) Treasury deposits
B) Federal Reserve Notes
C) Reserves of commercial banks
D) Loans to commercial banks

Question

Quizplus · Accepted Answer

The largest liability item on the Federal Reserve Banks' consolidated balance sheet is typically the reserves of commercial banks, which include both required and excess reserves that banks hold at the Fed.

The Largest Liability Item in the Federal Reserve Banks' Consolidated