3 Written questions
3 Multiple choice questions
- The currency a bank has in its vault and cash drawers.
- 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.
- A statement of the assets, liabilities, and net worth of a firm or individual at some given time.
3 True/False questions
Actual reserves → The funds that a bank has on deposit at the Federal Reserve Bank of its district (plus its vault cash).
Required reserves → The funds that a bank has on deposit at the Federal Reserve Bank of its district (plus its vault cash).
Federal funds rate → The interest rate banks and other depository institutions charge one another on overnight loans made out of their excess reserves.