Member banks of the Federal Reserve System:
A. must maintain all reserves with their Federal Reserve Bank
B. may include deposits held at large city banks as legal reserves
C. maintain levels of reserves based on the size of the city in which they are located
D. are permitted to count vault cash as part of their reserves
Answer:D
Member banks of the Federal Reserve System:
A. must maintain all reserves with their Federal Reserve Bank B. may include deposits held at large city banks as legal reserves C. maintain levels of reserves based on the size of the city in which they are located D. are permitted to count vault cash as part of their reserves