Final answer:
Both securities and loans to financial institutions are considered assets of the Federal Reserve, not currency in circulation.
Step-by-step explanation:
The student is asking about the assets of the Federal Reserve. The correct answer to fill in the blanks is: "Both securities and loans to financial institutions are Federal Reserve assets." Currency in circulation is part of the M1 money supply but is not an asset on the Federal Reserve's balance sheet. The Federal Reserve's assets mainly include securities, such as government bonds, and loans made to financial institutions.