A bank's reserves include
A) the cash in its vault plus any gold held for the bank at Fort Knox.
B) the cash in its vault plus the value of its depositors' accounts.
C) its common stock holdings, the cash in its vault, and any deposits at a Federal Reserve bank.
D) the cash in its vault plus its deposits held at a Federal Reserve bank.

Question

Quizplus · Accepted Answer

A bank's reserves include the cash held in its vault plus its deposits held at a Federal Reserve bank. The other options mentioned in A, B, and C are not considered as reserves.

A Bank's Reserves Include