Economics Homework Help

I don’t know how to handle this Economics question and need guidance.

1. Explain why currency circulating in the hands of the non-bank public is considered a liability of the central bank.

2. Listen to the following short discussion on the Fed’s balance sheet: Link (Links to an external site.)

Now, after listening to this discussion, do you personally think that there is cause to worry about the Fed attempting to shrink its balance sheet? Explain your reasoning.