A bank holds its reserves as ________ and ________.
A)securities; loans
B)securities; deposits at the Reserve Bank of Australia
C)vault cash; deposits at the Reserve Bank of Australia
D)vault cash; loans

Question

Quizplus · Accepted Answer

A bank holds its reserves in two ways, either as vault cash or as deposits at the Reserve Bank of Australia. The correct answer is C because it includes both of these options. The other options are incorrect, as banks may hold securities and make loans, but these are not considered their reserves.

A Bank Holds Its Reserves as ________ and ________

A Bank Holds Its Reserves as and