A bank's reserves include
A) the cash in its vault plus the value of its depositors' accounts.
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) its common stock holdings, the cash in its vault, and any deposits at a Federal Reserve bank.

Question

Quizplus · Accepted Answer

Reserves of a bank consist of the cash it holds in its vault plus its deposits at the Federal Reserve. These are assets that the bank can use to meet its liabilities, such as customer withdrawals.

A Bank's Reserves Include