Chapter 17 - The Central Bank Balance Sheet and the Money Supply Process96.(p. 403)The Federal Reserve's Balance sheet would include an item labeled Currency. Is thisan asset or a liability of the Fed, and does it include all currency that is printed? Explain.
AACSB: AnalyticBLOOMS: KnowledgeLOD: 297.(p. 403)If the central banks of most countries do not set the exchange rates, why do they hold foreign exchange as one of their assets?
AACSB: AnalyticBLOOMS: KnowledgeLOD: 298.(p. 401)One of the changes to the Fed's balance sheet that has occurred in recent years is the virtual elimination of a category of loans called float. How is float created and why has this item on the balance sheet almost disappeared?