Which of the following are part of a commercial bankʹs reserves?
I. cash in the bankʹs vaults
II. loans
III. cash in checking accounts
A) I only
B) I and III
C) I and II
D) I, II and III

Question

Quizplus · Accepted Answer

Reserves refer to cash and balances held by a bank to meet its customers' withdrawal demands and other obligations. Loans and cash in checking accounts are not part of a commercial bank's reserves. Only cash held in the bank's vaults is considered part of its reserves.

Which of the Following Are Part of a Commercial Bankʹs