Asked • 04/30/19

Why is a coin an asset whereas a note is a liability on the Federal Reserve's balance sheet?

Can someone explain me why coins are assets and notes are liabilities for the U.S. Federal Reserve? I know coins are made from "precious" metals, but even notes are made from various materials too, so I am assuming its not because of this reason. Could anyone explain the logic behind this?

1 Expert Answer


Craig Y. answered • 06/10/19

New to Wyzant

Personable Sr VP, CPA for Acctg, Finance, Business, Excel Tutoring

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