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

Question

Quizplus · Accepted Answer

A bank's reserves refer to the cash and deposits it holds at a Federal Reserve bank. Common stock holdings, value of depositors' accounts, and any gold held for the bank at Fort Knox are not included in a bank's reserves.

A Bankʹs Reserves Include