Required reserves are equal to which of these?

Question

Quizplus · Accepted Answer

Required reserves are a percentage of checkable deposit liabilities that depository institutions are required to hold as reserves with the Federal Reserve Banks. Option B is incorrect because reserves are not based on bank assets, but on deposit liabilities. Option C is incorrect because vault cash is only one form of reserves that can be held by a depository institution, but it does not necessarily determine the required reserve amount. Option D is incorrect because A is the correct answer.

Required Reserves Are Equal to Which of These