A bank's total reserves consist of

A) liquid assets such as private commercial paper and Treasury bills.
B) vault cash and Treasury bills.
C) vault cash only.
D) all assets.
E) vault cash and reserve deposits held at a regional Federal Reserve Bank.

Total Reserves

The total amount of funds or assets that a bank or financial institution has set aside to meet unexpected liabilities, requirements, or future obligations.

Vault Cash

Physical money, including coins and paper currency, that banks and other financial institutions hold in their vaults as part of their reserves.

Reserve Deposits

Reserve Deposits are funds that commercial banks hold in reserve, either in their vaults or deposited with a central bank, to meet regulatory requirements and ensure liquidity.