00:01
Hello students, in this video we will discuss about the federal reserve bank or the central bank in country u.
00:11
And what is the meaning of central bank assets, central bank liabilities and what do we gauge from the concept of monetary base in central bank? and also its balance sheet.
00:44
Okay, let's start.
00:48
So the central bank assets would include everything that is owned by them.
00:53
So the assets would be including the federal reserve bank in country u or the central bank in country u.
01:02
Assets would mean everything that is owned by the bank.
01:13
So, the central bank would mainly consist of two items that would be the government securities including treasury bills and bonds that could be bought in the bonds market and the loans that it has made from the depository institutions.
01:30
So it includes government securities and the loans that they have raised from the depository institutions.
01:54
Now let's understand the meaning of central bank liabilities.
02:05
So it would be in opposite or in contrast with the meaning of assets.
02:11
That means the everything that is that a federal reserve bank owes to pay their obligation to the other party and this would be including the individuals and the businesses that holds along the with what is kept in the tails and walls.
02:29
So this is the amount that is held by the banks from the individuals and businesses in their walls on the deals that is offered by the federal reserve bank and the deposits made by the depository institutions.
02:55
So let's understand what is the monetary base that is consisted of the liabilities of the federal reserve bank...