A depository institution's vault cash and funds held at its regional Federal Reserve Bank.

Question

Quizplus · Accepted Answer

The term "bank reserves" refers to the funds that a depository institution holds in its vault and with its regional Federal Reserve Bank. It includes both required reserves (the amount of funds that a bank must hold to meet regulatory requirements) and excess reserves (any funds in excess of required reserves). Deficit reserves, on the other hand, refer to a situation where a bank does not have enough reserves to meet the required minimum.

A Depository Institution's Vault Cash and Funds Held at Its