Which of the following is an example of a bank's reserves?
A) demand deposits with other banks
B) deposits with the Federal Reserve
C) Treasury bonds and bills
D) state bonds of the state in which the bank is located but not state bonds of other states.

Question

Quizplus · Accepted Answer

Reserves are the funds that a bank holds to fulfill its obligations to customers. Deposits with the Federal Reserve are the most common form of reserves that banks hold. The other options (A, C, D) are not examples of reserves, but rather they are different types of assets that a bank may hold.

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