The part of bank reserves deposited at the Fed are
A)assets for banks and liabilities for the Fed.
B)assets for the Fed and liabilities for banks.
C)assets for both the Fed and banks.
D)liabilities for both the Fed and banks.

Question

Quizplus · Accepted Answer

The part of bank reserves deposited at the Fed are considered assets for banks because they represent funds that banks can use or loan out. For the Federal Reserve (Fed), these deposits are liabilities because they are funds the Fed owes back to the banks.

The Part of Bank Reserves Deposited at the Fed Are