What are the major assets of the Federal Reserve System? Describe each.

The major assets of the Federal Reserve System include government securities, discount loans to banks, and physical assets such as buildings and equipment. Government securities refer to bonds and other securities issued by the U.S. Treasury. The Fed holds a large amount of government securities, which it can use to conduct open market operations and influence the supply of money in the economy. Discount loans are loans that the Fed makes to banks in need of short-term funds. These loans are backed by the bank's collateral, such as government securities. The Fed charges a discount rate on these loans, which is typically higher than the federal funds rate, and serves as a way to manage the money supply and ensure the stability of the banking system. The Fed also owns physical assets, such as buildings and equipment, which are used to support its operations. These assets include the Federal Reserve banks located throughout the country, the Federal Reserve Board in Washington, D.C., and various operational and support facilities. Overall, the Federal Reserve's assets allow it to conduct monetary policy, support financial stability, and provide services to the banking system and the broader economy.