A financial depository institution's actual reserves are equal to its:
A) reserve account balance plus vault cash.
B) required reserves minus excess reserves.
C) demand deposit balances plus vault cash.
D) demand deposit balances minus excess reserves.

Question

Quizplus · Accepted Answer

Actual reserves in a financial depository institution consist of the reserve account balance held at the central bank plus the vault cash it has on hand. These are the physical and electronic funds available to meet withdrawal demands and reserve requirements.

A Financial Depository Institution's Actual Reserves Are Equal to Its