On the liability side, there are also two major figures: Demand deposits held by the commercial Banks, which constitute the reserves of those Banks; and Federal reserve Notes, cash emitted by the Fed.

The Federal Reserve System has added $10, 000of securities to its assets, which it has paid for, in effect, by creating a liability on itself in the form of bank reservebalances.

Reserve of life insurance contracts consists of best estimated liability, risk margin and residual margin.