The amount of deposits that a bank must hold in its vaults is called:
A) a discount fund.
B) savings.
C) federal funds.
D) a required reserve.
E) vault cash.

Question

Quizplus · Accepted Answer

The required reserve is the amount of deposits that a bank is required to hold in its vaults or in a reserve account at the central bank. This is to ensure that the bank has enough funds to meet unexpected withdrawals and maintain financial stability.

The Amount of Deposits That a Bank Must Hold in Its