To count as required reserves, the reserves must be on deposit at ...

[iveyjurea]

To count as required reserves, the reserves must be on deposit at the bank's district Federal Reserve Bank. Is the previous statement correct or incorrect?
 
  What will be an ideal response?

Question 2

The figure above shows the market for a good with an external benefit. If the market is competitive and the government takes no action, the equilibrium quantity is ________ units and the equilibrium price is ________ per unit.
 
  A) 8; 150
  B) 8; 300
  C) 10; 250
  D) 10; 100
  E) 10; 150

[Benayers]

Answer to Question 1

The statement is incorrect. Currency held in the bank's vault also counts as reserves.

Answer to Question 2

A