The Fed's Financial Accounts: What Are Uncle Sam's Largest Assets?

Pop Quiz! Without recourse to your text, your notes, or a Google search, which line item is the largest asset in Uncle Sam's financial accounts?

  • A) Checkable Deposits and Currency
  • B) Total Mortgages
  • C) Taxes Receivable
  • D) Student Loans

The correct answer, as of the latest quarterly data, is D) Student Loans. For a brief period in 2020 the answer to this was A) Checkable Deposits and Currency due to a decline in student loan balances because of CARES Act forbearances. Checkable Deposits and Currency soared as a result of massive stimulus and reduced consumption from the COVID pandemic.