Question

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What is the term for the account balances of commercial banks held by the central bank?
The account balances of commercial banks held by the central bank are termed ________

Answer 1

The account balances of commercial banks held by the central bank are termed as Bank reserves or Reserves

Step-by-step explanation:

One function of the central bank is to be a bank to the commercial banks. Each licensed bank is required to open and operate an account with the central bank. The deposits that commercial banks hold at the central bank as known as bank reserves or reserves.

The central bank offers banking services to commercial banks, just as commercial banks serve their customers. The central bank accepts deposits, process checks, and issues loans to commercial banks