A bank's "required reserves" are:
A) held as deposits with the Federal Reserve System.
B) equal to its checkable deposits.
C) equal to its transactions deposits.
D) equal to its loans.

Question

Quizplus · Accepted Answer

Required reserves refer to the amount of funds that a bank is required to hold in reserve to meet its obligations. These reserves are held as deposits with the Federal Reserve System, which is responsible for regulating the supply of money and credit in the economy.

A Bank's "Required Reserves" Are