Question

Suppose you have a Canadian quarter in your pocket. How is this money counted in the Fed balance sheet?

	A.	Liability
	B.	Asset
	C.	The money does not appear on the Fed balance sheet

Answer 1

Answer- Correct option is 'C'

Suppose you have a Canadian quarter in your pocket, this money does not appear on the Fed balance sheet. Because the Fed balance sheet consists of assets and liabilities. The Fed assets consist primarily of the government securities and the loans it extends to its regional bank. Its liabilities includes U.S currency in circulation. Other liabilities include money held in the the reserve account of member banks and U.S depository institutions. The Fed balanced sheet is a weekly report that list the Federal Reserve's assets and liabilities.