The largest component of "non- interest cash and due from banks" is:
A) cash items in process of collection.
B) deposits held at other financial institutions.
C) federal funds sold.
D) vault cash.
E) loans from the Federal Reserve.

Question

Quizplus · Accepted Answer

Cash items in process of collection typically represent the largest component of "non-interest cash and due from banks" because they are checks or other items in transit that have been received and are being processed for deposit but have not yet been credited to the bank's reserve account.

The Largest Component of "Non- Interest Cash and Due from Banks