A bank holds its reserves as ________ and ________.

Name: A bank holds its reserves as ________ and ________.
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The two primary ways a bank holds its reserves are through vault cash (cash held physically in the bank's vault) and deposits at the Federal Reserve. Option A is incorrect because loans are not a part of a bank's reserves. Option B is incorrect because while securities may be held by banks, they do not count as reserves. Option D is incorrect because loans are not a component of reserves.

A Bank Holds Its Reserves as ________ and ________

A Bank Holds Its Reserves as and