The amount of checkable deposits that banks are required by regulation to hold are the
A)excess reserves.
B)required reserves.
C)vault cash.
D)total reserves.

Question

Quizplus · Accepted Answer

Required reserves are the amount of checkable deposits that banks are required by regulation to hold. Excess reserves are any reserves held in excess of required reserves. Vault cash is the physical cash held by a bank in its vaults. Total reserves are the sum of required reserves and excess reserves.

The Amount of Checkable Deposits That Banks Are Required by Regulation