Question

Which of the following are included in bank reserves for private​ banks? ​(Check all that apply​.)...

Which of the following are included in bank reserves for private​ banks? ​(Check all that apply​.)

A. Deposits at the central bank.

B. Gold or silver.

C. Loans to other private banks.

D. Loans to commercial firms.

E. Vault cash.

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Answer #1

Answer-Option A, Deposits at the central bank and Option E, Vault cash are included in bank reserves for private banks these included in reserves because vault money is the money which banks keeps within premises to fulfill the need of their day to day cash needs like to pay depositors while deposits at the central bank is the amount which is deposited by the bank as a reserve to the central bank.

Option B Gold or silver ,Option C loans to other private banks and option D loans to commercial firms are incorrect answer because these are not included in bank reserves for private banks.

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