Question

The assets backing the federal reserve notes are?

Answer 1

Federal Reserve Notes are backed by the assets of the Federal Reserve Banks, these assets are Treasury securities purchased by the Federal reserve

A Federal Reserve note is another term for Paper Currency circulating in the United States and the currency is in dollars. The notes are printed at the instruction of the Board of governors and 12 Federal reserve banks. These notes are legal tender like in any other currency and are accepted in return for payments against goods and services.