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Unformatted text preview: of a huge amount of government debt that is present in the form of U.S. government bonds . The U.S. Treasury issues these bonds in order to pay for the deficits of the present as well as past governments. Now the Liabilities section of the Balance Sheet of the Fed comprises of all the Federal Reserve Notes (U.S. currency) in circulation as well as all ’reserves’ held with the Fed, which are actually private bank deposits . An important thing to remember is that the Fed’s total liabilities will always equal its total assets....
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This note was uploaded on 11/17/2011 for the course EC ec 201 taught by Professor - during the Fall '10 term at Montgomery.
- Fall '10