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) none of the above.

Question

Quizplus · Accepted Answer

Required reserves are the funds that a bank must keep on hand to meet its obligations to depositors and withdrawals. These reserves are held as deposits with the Federal Reserve System.

A Bank's "Required Reserves" Are