fed's balance sheet

was reviewing some econ this morning and came across section that lists assets fed holds on balance sheet, gold, deposits w/other central banks, IMF SDR, treasury secs, loans at disc rt. since last year, or probably even late '07 the fed has been accepting some less than stellar assets as collateral for loans, in addition to ‘buying’ some crap assets from these institutions we call ‘banks.’ should a question arise about the makeup of the fed’s balance sheet do you think CFAi would try to throw us a curve ball by including the new, riskier, assets being acquired by the fed as makeup of their balance sheet? thanks, john

I doubt it. I read somewhere on the CFA website (can’t remember exactly where) that any changes in the “real world”, for lack of a better world, is not the responsibility of the candidate for that particular exam. I am pretty sure you are safe with the three components listed in the text. Assuming that these “crap assets” can’t be lumped in with an existing component (which is highly unlikely people are lending gold as a crap asset).

The answer to your question is no. The answers to all the questions they will ask comes from the book, no matter how inaccurate the book content is now.