If money issued by a central bank such as the Federal Reserve is a liability, what about money within it? Does it remain a liability because it’s money, or does it become an asset when it becomes part of a central bank’s own fund? There are various kinds of money that a central bank keeps like money it receives as profit, income from selling bonds, or its own capital. How does a central bank like the Fed classify its own funds distinctly from money it injects into the economy?
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The cash in the central bank is an asset. But they have a big mix of stuff, some is cash, some is just deposits from other banks, they’ve got a bunch of debt on their books, they hold debt for other entities.
It’s complicated for sure, but in the US at least “the Fed” is made up of 12 regional banks in cities around the country, and they do have real assets, which includes cash reserves. The debt they hold is a liability. The cash is an asset.
Here’s more info https://www.investopedia.com/ask/answers/07/central-banks.asp with a video that might be helpful too
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