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A Federal Reserve Note is a type of banknote. Federal Reserve Notes are printed by the United States Bureau of Engraving and Printing on paper made by Crane & Co. of Dalton, Massachusetts. They are the only type of U.S. banknote that is still produced today and they should not be confused with Federal Reserve Bank Notes.
Federal Reserve Notes "are authorized" by Section 411 of Title 12 of the United States Code. They are issued to the Federal Reserve Banks "at the discretion of the Board of Governors of the Federal Reserve System". The notes are then issued into circulation by the Federal Reserve Banks. When the notes are issued into circulation they become liabilities of the Federal Reserve Banks and "obligations of the United States".
Federal Reserve Notes are fiat currency, with the words "this note is legal tender for all debts, public and private" printed on each note. (See generally 31 U.S.C. § 5103.) They have replaced United States Notes, which were once issued by the Treasury Department.
Banks do have assets, folks.