Total reserves are
A)required reserves plus excess reserves.
B)borrowed reserves plus nonborrowed reserves.
C)vault cash plus deposits at the Fed.
D)All of the above are correct.

Question

Quizplus · Accepted Answer

Total reserves in a banking system include required reserves (the minimum amount banks must hold by regulation), excess reserves (any reserves banks hold above the required amount), vault cash, and deposits at the Federal Reserve. They also encompass both borrowed and nonborrowed reserves. Therefore, all the options provided (A, B, and C) correctly describe components or aspects of total reserves.

Total Reserves Are