Question

A commercial bank's reserves are Multiple Choice liabilities to the commercial bank and assets to the Federal Reserve Bank holding them. liabilities to both the commercial bank and the Federal Reserve Bank holding them. assets to the commercial bank and liabilities to the Federal Reserve Bank holding them. assets to both the commercial bank and the Federal Reserve Bank holding them.

Answer 1

Answer:

assets to the commercial bank and liabilities to the Federal Reserve Bank holding them.

Explanation:

A commercial's bank's reserves are assets to the commercial bank and liabilities to the Federal Reserve Bank holding them.

Assets are all the resources owned by the commercial bank while liabilities are their debts or financial obligations to the Federal Reserve Bank.

The reserves of a commercial bank generally is comprised of deposits at the Federal Reserve Bank and vault cash.

Excess reserves determines the amount a commercial bank can lend out.