CFA Practice Question

There are 341 practice questions for this study session.

CFA Practice Question

Bank reserves are ______.

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
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