Chap 26
Chap 26
Chap 26
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224 CHAPTER 10<br />
F. The Fed’s Balance Sheet<br />
1. On the Fed’s balance sheet, the<br />
largest and most important asset is<br />
U.S. government securities. The<br />
most important liabilities are Federal<br />
Reserve notes in circulation and<br />
banks’ deposits. Table 10.3 shows<br />
the Fed’s balance sheet for February<br />
2002.<br />
2. The sum of Federal Reserve notes,<br />
coins, and banks’ deposits at the Fed<br />
is the monetary base.