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b.Suppose that a bank holds cash in its vault of $1.4 million, short-term government securities...

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Finance

b.Suppose that a bank holds cash in its vault of $1.4 million, short-term government securities of $12.4 million, privately issued money market instruments of $5.2 million, deposits at the Federal Reserve banks of $20.1 million, cash items in the process of collection of $0.6 million, and deposits placed with other banks of $16.4 million. Which of these items should be categorized as primary reserve and which as secondary reserve?

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