Total reserves in the banking system are indeed equal to required reserves plus excess reserves (A), equal to vault cash plus bank deposits at the Federal Reserve (B), and are considered an asset to banks (C). Therefore, all of the statements A, B, and C are correct, making E the correct choice.

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Total Reserves Are

Question 83

Multiple Choice

Total reserves are

A) equal to required reserves plus excess reserves.
B) equal to vault cash plus bank deposits at the Federal Reserve.
C) an asset to banks.
D) both b and c
E) all of the above

Correct Answer: