Reserves are assets for banks and part of high-powered money.

Name: Reserves are assets for banks and part of high-powered money.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Reserves are indeed assets for banks as they represent funds that banks hold in their accounts with the central bank or as cash in vaults, and they are part of high-powered money (or monetary base), which includes currency in circulation and banks' reserves with the central bank.

Reserves Are Assets for Banks and Part of High-Powered Money