A financial depository institution's required reserves are:
A) equal to 10% of its actual reserves.
B) equal to its deposits plus its vault cash.
C) the percentage of actual reserves that must be kept on reserve.
D) the amount of actual reserves that must be kept to back deposits.

Question

Quizplus · Accepted Answer

Required reserves are the amount of actual reserves that a financial depository institution must hold to back its deposits, as mandated by the central bank.

A Financial Depository Institution's Required Reserves Are