Question

Required reserves are defined as_________-. A. currency plus travelers checks plus demand deposits. B. the difference between legal reserves and vault cash C. deposits held at Federal Reserve district banks plus vault cash. D. the value of reserves that a depository institution must hold in the form of vault cash or deposits at the Fed..

Answer 1

D. the value of reserves that a depository institution must hold in the form of vault cash or deposits at the Fed.

Step-by-step explanation:

Required reserves is the value of reserves that a depository institution must hold in the form of vault cash or deposits at the Fed.

Excess reserve are deposits held at Federal Reserve district banks plus vault cash.

M1 is currency plus travelers checks plus demand deposits.

I hope my answer helps you.