CFA Practice Question

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CFA Practice Question

The cash in a bank's vault plus its deposits at Federal Reserve banks is ______.

A. M1
B. assets
C. reserves
Correct Answer: C

User Contributed Comments 5

User Comment
indrasenareddy why is it not B. Can the reserves of the Bank - assets ?
2014 Why not B as answer

as it specifies cash in bank vault and "its" deposits with federal reserve bank. By specifying its it implies reserve on this cash is already deposited with fed
Inaganti6 Reddapppaaaaaa
ibrahim18 Cash in the vault is depositor's money. This is a liability to the bank and not an asset. Thus, the answer cannot be B. It's not A either.
xp_acctant @Ibrahim18: deposit is a liability while cash is an asset to the bank.
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