O C central banking system. O d required reserve banking. QUESTION 18 In the Uni

Question

O C central banking system. O d required reserve banking. QUESTION 18 In the United States, where do depository institutions hold their reserves? O a either as vauilt cash or on reserve with Federal Reserve district banks bin their own vaults in the form of precious metals such as gold and silver All reserves must be held at a Federal Reserve district bank. 0 d. in accounts with the U.S. Department of the Treasury QUESTION 19 A bank with $200 million in transaction deposits keeps $20 million in cash in the bank vault, at the Fed and $5 million in rnvernment serurities in the hank vaiult. its total reserves enual s to

Explanation / Answer

Q18
Answer
Option a
The reserve =cash at vault+reserves at federal reserves
so the all the banks keep the reserve with them in cash vaults or with Federal reserve

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