If a bank's deposits at the Federal Reserve equal $40 million and its total reserves equal $35 million,what does the bank's vault cash equal?

Question

Quizplus · Accepted Answer

The bank's total reserves are the sum of its deposits at the Federal Reserve and its vault cash. If total reserves are $35 million and deposits at the Federal Reserve are $40 million, then vault cash must be $5 million ($40 million - $35 million).

If a Bank's Deposits at the Federal Reserve Equal $40