Bank reserves are:

Question

Bank reserves are:

Quizplus · Accepted Answer

Bank reserves are the fraction of deposits kept in the form of very liquid assets, such as cash or deposits held at the central bank. This allows banks to quickly meet withdrawal demands from customers or fulfill obligations to other banks. While gold may be held by banks as an asset, it is not typically considered a liquid asset for reserve purposes. Option B is describing a process of lending, rather than describing reserves themselves. Option D is simply describing a physical asset kept by the bank.

Bank Reserves Are