Bank reserves are not affected by

Question

Quizplus · Accepted Answer

Bank reserves are primarily affected by factors that directly influence the amount of funds banks hold in reserve at the central bank or in their vaults. Currency in circulation refers to the money that is physically held by the public. While it is part of the broader money supply, it does not directly affect the reserves that banks maintain at the central bank or in their vaults. Changes in reserve requirements, open market operations, and the level of deposits of foreign banks at the Federal Reserve directly impact bank reserves by altering the amount of reserves banks are either required to hold, choose to hold, or are able to hold.

Bank Reserves Are Not Affected by