00:01
Which bank assets would not satisfy the definition of a bank reserve? a, treasury bonds that can be traded out in the open market.
00:09
B, cash kept in its main vault.
00:11
C, cash kept in its atms.
00:14
Or d, money deposited in an account at the regional federal reserve bank.
00:20
So bank reserves are the cash minimums that financial institutions must have on hand in order to meet the central bank requirements.
00:28
This is real paper money that must be kept by the financial institutions.
00:31
The bank in a vault on site or held in its accounts at the central bank.
00:36
Cash reserve requirements are intended to ensure that every bank can meet any large and unexpected demand for withdrawals.
00:44
So the key is here to determine what one of these answers is correct is one, that it's cash, it's real paper money, and two, that it is stored either in a vault or in an account at the central bank.
01:21
As such, the correct answer here for which one of these does not satisfy the definition of a bank reserve.
01:27
It's cash kept in atms...