Before the Federal Reserve System was created, a large part of the reserves of commercial banks was:
A. in the form of state and federal government bonds
B. deposited with the United States Treasury
C. held as deposits with large city banks
D. held as cash in their vaults
Answer:C
Before the Federal Reserve System was created, a large part of the reserves of commercial banks was:
A. in the form of state and federal government bonds B. deposited with the United States Treasury C. held as deposits with large city banks D. held as cash in their vaults