Which of the following is an example of a bank's reserves?
A) currency held in the vaults of the bank
B) demand deposits with other member banks
C) U.S. Treasury bills
D) U.S. Treasury bonds

Question

Quizplus · Accepted Answer

Reserves refer to the deposits that a bank holds in its vault or at the Federal Reserve Bank. Currency held in the vaults of the bank is an example of reserves. Demand deposits with other member banks, U.S. Treasury bills, and U.S. Treasury bonds are not examples of a bank's reserves.

Which of the Following Is an Example of a Bank's