The main asset on the Federal Reserve's balance sheet is
A)discount loans.
B)securities.
C)monetary base.
D)capital.

Question

Quizplus · Accepted Answer

The main asset on the Federal Reserve's balance sheet is securities, which include U.S. Treasury securities, federal agency debt, and mortgage-backed securities. These securities are purchased by the Fed in open market operations to inject money into the economy or sold to decrease the money supply. Discount loans and capital are liabilities on the Fed's balance sheet, while the monetary base includes both assets and liabilities.

The Main Asset on the Federal Reserve's Balance Sheet Is