In the banking system today, the reserves banks hold against their deposit liabilities must take one of two forms. They are
A) vault cash and deposits at the Fed.
B) vault cash and checkable deposits.
C) currency in circulation and checkable deposits.
D) gold and vault cash.

Question

Quizplus · Accepted Answer

The reserves banks hold against their deposit liabilities must take the form of vault cash and deposits at the Fed. Currency in circulation, checkable deposits, and gold are not included in reserves.

In the Banking System Today, the Reserves Banks Hold Against