A bank has $250 in checking deposits,$1,000 in savings deposits,$1,200 in time deposits,$1,000 in loans to businesses,$400 in outstanding credit card balances,$800 in government securities,$25 in currency in its vault,and $25 in deposits at the Fed.The bank's reserves are equal to
A)$25.
B)$275.
C)$2,225
D)$50.
E)$350.

Question

Quizplus · Accepted Answer

The bank's reserves are the sum of the currency in its vault and deposits at the Fed, which is $25 + $25 = $50.

A Bank Has $250 in Checking Deposits,$1,000 in Savings Deposits,$1,200