3 Written Questions
3 Multiple Choice Questions
- The funds that banks and thrifts must deposit with the Federal Reserve Bank (or hold as vault cash) to meet the legal reserve requirement; a fixed percentage of the bank's or thrift's checkable deposits.
- A reserve requirement that is less than 100 percent of the checkable-deposit liabilities of a commercial bank or thrift institution.
- The fraction of checkable deposits that a bank must hold as reserves in a Federal Reserve Bank or in its own bank vault; also called the reserve requirement.
3 True/False Questions
Vault cash → The currency a bank has in its vault and cash drawers.
Balance sheet → The currency a bank has in its vault and cash drawers.
Excess reserves → The funds that a bank has on deposit at the Federal Reserve Bank of its district (plus its vault cash).