Which asset is sometimes referred to as a bank's secondary reserves?

Question

Quizplus · Accepted Answer

U.S. government securities are sometimes referred to as a bank's secondary reserves because they are highly liquid and easily salable in the secondary market, which provides banks with a backup option for obtaining additional funds if necessary. Vault cash is considered a bank's primary reserve, while repurchase agreements and federal funds are short-term borrowing options that banks use to meet reserve requirements or manage liquidity.

Which Asset Is Sometimes Referred to as a Bank's Secondary