- CFA Exams
- CFA Level I Exam
- Topic 2. Economics
- Learning Module 4. Monetary Policy
- Subject 2. Monetary Policy Tools and Monetary Transmission
CFA Practice Question
Bank reserves are ______.
B. a financial liability for the bank
C. not counted as money
A. a financial asset for the Fed
B. a financial liability for the bank
C. not counted as money
Correct Answer: C
Bank reserves aren't counted as money since they cannot be used as long as they are held.
User Contributed Comments 5
| User | Comment |
|---|---|
| danlan | Also they are not financial liabilities for the bank. |
| magicchip | danlan, in fact they are assets of the bank. |
| DannyZhou | Asset of bank and liability of fed, is that right? Just checking. |
| ambar | That's correct DannyZhou. |
| choas69 | they cant function as medium of exchange so not money |