6. Banks hold some deposits on reserve at the Fed because a. These deposits meet the reserve requirements of the Fed. b.The Fed requires every bank to hold at least $100 million on deposit at all times. c.These are membership dues for being a member bank. d. The Fed will insure those deposits, but will not insure regular bank deposits.

Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter27: Money And Banking
Section: Chapter Questions
Problem 30P: A bank has deposits of 400. It holds reserves of 50. It has purchased government bonds worth 70. It...
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6. Banks hold some deposits on reserve at the Fed because

a. These deposits meet the reserve requirements of the Fed.

b.The Fed requires every bank to hold at least $100 million on deposit at all times.

c.These are membership dues for being a member bank.

d. The Fed will insure those deposits, but will not insure regular bank deposits.

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