In the United States, where do depository institutions hold their reserves?

Question

Quizplus · Accepted Answer

Depository institutions hold their reserves either as vault cash or on reserve with Federal Reserve district banks. This is done to ensure that there is enough money available to cover withdrawals by customers, as well as to meet the reserve requirements set by the Federal Reserve. While some institutions may also hold precious metals such as gold and silver, this is not a primary method of reserve holding, and all reserves do not have to be held at a Federal Reserve district bank.

In the United States, Where Do Depository Institutions Hold Their