Required reserves:
A) Must be held at the regional Fed bank.
B) Represent the dollars that a bank can lend.
C) Are the minimum amount of reserves a bank is required to hold.
D) Are equal to total reserves minus expected reserves.

Question

Quizplus · Accepted Answer

Required reserves are the minimum amount of reserves that a bank is required to hold by the Fed. These reserves are not available for lending and must be kept in the bank's reserve account at the regional Federal Reserve bank.

Required Reserves