Which of the following statements is INCORRECT?
Show answer & explanation
Correct answer: D
Explanation
The correct answer is Option 4 i.e. Vault cash is also a part of the money supply.
- Vault cash is one of two types of bank assets that are considered reserves and used to satisfy reserve requirements.
- Vault Cash means the currency supplied by one or more third party financial institutions pursuant to the terms of a Vault Cash Agreement for the exclusive purpose of stocking the Company ATMs, which includes currency that is (i) loaded into a Company ATM and/or (ii) in the possession of an armored carrier service under contract with one or both of the Companies for the express purpose of delivering such currency to (or retrieving such currency from) a Company ATM.