1) Bank reserves include
A) deposits at the Fed and short term treasury securities.
B) vault cash and short term Treasury securities.
C) vault cash and deposits at the Fed.
D) deposits at other banks and deposits at the Fed.
2) The fraction of checkable deposits that banks are required by regulation to hold are
A) excess reserves.
B) required reserves.
C) vault cash.
D) total reserves.
3) Which of the following are reported as assets on a bank”s balance sheet?
A) Borrowings
B) Reserves
C) Savings deposits
D) Bank capital
4) Which of the following are not reported as assets on a bank”s balance sheet?
A) Cash items in the process of collection
B) Deposits with other banks
C) U.S. Treasury securities
D) Checkable deposits
5) Through correspondent banking, large banks provide services to small banks, including
A) loan guarantees.
B) foreign exchange transactions.
C) issuing stock.
D) debt reduction.