Bank __________ must be held in the form of vault cash and deposits with the central bank.

Question

Quizplus · Accepted Answer

Reserves are the funds banks are required to hold either in the form of vault cash or as deposits with the central bank. This is done to ensure that banks have enough liquidity to cover depositor withdrawals and other obligations. Assets, liabilities, and capital include different types of accounts and investments that banks hold, but only reserves are specifically required to be held in the form of vault cash and deposits with the central bank.

Bank __________ Must Be Held in the Form of Vault